Canara HSBC Life IPO: GMP crawls up on last day; Geojit flags pros and cons
After languishing at the level of zero, the GMP of Canara HSBC Life IPO has crawled up to Re 1 on October 14, the last day of bidding. Geojit Financial highlights the pros and cons of the public issue. Take a loot before you apply.
Kolkata: Today, October 14 is the last day to bid for Canara HSBC Life IPO. Till the end of day two of the bidding process, Canara HSBC Life IPO was subscribed 0.27 times overall -- 0.28 times in the retail category, 0.32 times in QIB (Ex Anchor) category and 0.14 times in the NII category. The GMP, too, has just got off from the level of zero. While these parameters do not paint a very enthusiastic picture about investor enthusiasm, many experts say that one should have a look at the long-term potential of a company and its underlying business before bidding for a public issue. Let's have a look at what Geojit Financial has to say about this IPO.
Canara HSBC Life Insurance Company is a private life insurance company set up in 2007. Its promoters are the country's fourth-biggest PSU bank, Canara Bank, and HSBC Insurance (Asia-Pacific) Holdings, which is an arm of the global HSBC Group. As of June 2025, it was one of the top three PSU bank-promoted life insurance companies in India.
Canara HSBC Life IPO GMP crawls up
According to investorgain Canara HSBC Life IPO GMP is Re 1, on the last day of bidding. Considering a price band of Rs 106.00, the listing gain indicated by this GMP is 0.94%. However, GMP is a volatile and unofficial gauge that does not guarantee anything on listing -- gain or loss.
The price band of the IPO is Rs 100-106. The company wants to raise Rs 2,517.50 crore. It entirely consist of OFS shares. The smallest lot size for a retail investor is 140 shares. Employees will get a discount of Rs 10.00 to the issue price.
Geojit Financial on Canara HSBC Life IPO
Geojit Financial has pointed out that at the upper price band of Rs 106, Canara HSBC is trading at a P/EVPS of 1.65x (FY25). This is about 68% lower than the average valuation of prominent banking life insurance companies. The company has a strong growth in AUM, and profitability. Therefore, Geojit assigned a subscribe rating with a mid-term to long-term investment. The firm has labelled the greater reliance on the bancassurance channel for new business premiums, with Canara Bank contributing around 70%, as a risk of the IPO.
The company has got strong parents and a trusted brand and can boast of a robust multi-channel distribution network across the country. The product portfolio is diverse. The firm has a technology-integrated business platform and is driven by an experienced management team.
Canara HSBC Life IPO financials
The total life insurance premium in India is expected to grow at a CAGR of 8-10% in the period FY26-28. But bank-led insurance companies are expected to grow at a CAGR of 10-12% in the same time window. Schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana and GST removal on individual life and health insurance policies could boost demand.
The company's AUM rose from Rs 30,204.4 crore in Q1 FY23 to Rs 43,639.4 crore in Q1 FY26, indicating a CAGR of 12%. The embedded value jumped from Rs 4,272 crore in FY23 to Rs 6,352 crore in Q1 FY26, which marks a CAGR of 13%. The net premium income is expected to rise from Rs 7,030 crore in FY2023 to Rs 7,850 crore in FY2025, which is a CAGR of 5.7%.
PAT surged from Rs 91.2 crore in FY2023 to Rs 117 crore in FY2025 (CAGR of 13.2%).
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