Canara HSBC Life Insurance Announces ₹2,517 Crore IPO with Price Band of ₹100-106
Canara HSBC Life Insurance Company has revealed details of its upcoming Initial Public Offering (IPO). The company has set a price band of ₹100-106 per share for its ₹2,517 crore IPO, with shares having a face value of ₹10 each. The IPO, structured as a full Offer For Sale (OFS), will open on October 10 and close on October 14, 2023. The allocation structure includes 35% for retail investors, 15% for non-institutional HNIs, and 50% for institutional investors. At the upper price band, the company's market capitalization is expected to exceed ₹10,000 crore. The IPO will reduce promoter holding from 77% to 62%, increasing public float.
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Canara HSBC Life Insurance Company has unveiled details of its much-anticipated Initial Public Offering (IPO), setting the stage for a significant market event in the insurance sector. The company has announced a price band of ₹100-106 per share for its ₹2,517 crore IPO, with shares having a face value of ₹10 each.
Key IPO Details
| Particulars | Details |
|---|---|
| Price Band | ₹100-106 per share |
| Face Value | ₹10 per share |
| IPO Size | ₹2,517 crore |
| Subscription Period | October 10-14, 2023 |
| Minimum Bid | 140 shares |
| Minimum Investment (Retail) | ₹14,840 |
Allocation Structure
The IPO has been structured to accommodate various investor categories:
| Investor Category | Allocation |
|---|---|
| Retail Investors | 35% |
| Non-institutional HNIs | 15% |
| Institutional Investors | 50% |
Offer Details and Impact
This IPO is structured as a full Offer For Sale (OFS), where the company's promoters - Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank - will be selling their shares. The company itself will not receive any proceeds from this offer.
At the upper end of the price band, Canara HSBC Life Insurance is poised to achieve a market capitalization exceeding ₹10,000 crore. This offering will result in a reduction of promoter holding from the current 77% to 62% post-IPO, increasing the public float of the company's shares.
Timeline
Investors and market watchers should mark these key dates:
- IPO Opens: October 10, 2023
- IPO Closes: October 14, 2023
- Share Allotment: Scheduled for October 15, 2023
- Trading Commencement: Expected on October 17, 2023
This IPO represents an opportunity for investors to participate in the growth story of Canara HSBC Life Insurance. Potential investors are advised to carefully review the offer document and consider their financial objectives before making an investment decision.
The insurance sector in India has been witnessing increased activity in terms of public offerings, and this IPO adds to the growing list of choices for investors interested in this sector.
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