Home / Business and Economy / Canara HSBC Life IPO Trades at 9% GMP Ahead of Listing
Canara HSBC Life IPO Trades at 9% GMP Ahead of Listing
10 Oct
Summary
- Canara HSBC Life IPO opens, subscribed 4% on Day 1
- Unlisted shares trade at 9% premium over IPO price
- Anchor book raises Rs 750 crore from global, domestic investors
On October 10, 2025, the initial public offering (IPO) of Canara HSBC Life Insurance Company opened for public bidding. The Rs 2,517 crore IPO, which is a pure offer-for-sale by the existing shareholders, has seen a muted response so far, with only 4% subscription on the first day.
The IPO received bids for over 58.44 crore shares, against the offer size of 16.67 crore shares. Retail investors have booked 6% of their reserved portion, while employees subscribed 15% of the portion kept for them. However, non-institutional investors (NII) and qualified institutional buyers (QIB) are yet to make any substantial bids.
Interestingly, ahead of the listing, the unlisted shares of Canara HSBC Life Insurance were trading at a premium of over 9% in the grey market compared to the IPO price. This suggests potential listing gains for investors, though the company's lower VNB (value of new business) margin compared to peers remains a concern.
A day before the IPO opened, Canara HSBC Life Insurance had raised Rs 750.3 crore through an anchor book allocation. Global investors like Ashoka WhiteOak, Allianz Global, and Pictet, as well as domestic mutual fund houses, participated in the anchor book.
