Canara HSBC Life Insurance IPO Sees Steady Interest on Day Two

The initial public offering (IPO) of Canara HSBC Life Insurance Company Ltd has entered its second day of subscription, as of 13 October 2025. Following a muted response on its launch day, the IPO, valued at Rs 2,517.50 crore, has begun to capture the attention of investors. Launched on 10 October, the IPO will remain open for bids until 14 October. Share allotment is scheduled for 15 October, with the listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) planned for 17 October.

The IPO comprises an offer-for-sale (OFS) of 23.75 crore equity shares, with a price range set between Rs 100 and Rs 106. Investors can apply in lots of 140 shares, while employees are entitled to a reserved quota of 15.5 lakh shares at a discount of Rs 10 to the issue price.

IPO Subscription Progress

As of 1:00 pm on the second day, overall subscription for the IPO has reached 15 percent. Retail Individual Investors (RIIs) are leading the demand with a subscription of 23 percent, followed by Non-Institutional Investors (NIIs) at 10 percent, and Qualified Institutional Buyers (QIBs) at 3 percent.

Updates from the grey market indicate that the latest Grey Market Premium (GMP) for the Canara HSBC Life IPO is Rs 0 as of 12:54 pm, according to the grey market tracking site, Investorgain. Given the upper price band of Rs 106, the estimated listing price aligns at Rs 106, suggesting an expected gain or loss of 0.00 percent per share.

Strong Growth Fundamentals Support IPO

Canara HSBC Life Insurance has shown significant growth potential, with its Embedded Value (EV) increasing from Rs 42,719.3 million in FY23 to Rs 63,526.4 million by June 2025. Analysts from BP Equities highlight that the company’s current price-to-embedded value (P/EV) multiple of 1.6x at the upper price band appears attractive compared to its industry peers, indicating potential undervaluation and robust growth prospects.

Given these insights, BP Equities has assigned a “Subscribe” rating to the IPO, emphasizing its potential for future gains. The IPO is being managed by SBI Capital Markets Ltd as the book-running lead manager, while Kfin Technologies Ltd serves as the registrar.

As the subscription period progresses, investors are keenly evaluating the IPO’s prospects against its market performance, with a focus on its long-term growth potential.