Canara hsbc life ipo: IPO is out in the market these days. The IPO of Canara HSBC Life will open on October 10 and will close on 14 October. The price band of this issue is 100 to 106 rupees per share. Canara is a joint venture of HSBC Life, Canara Bank and HSBC. The company is associated with insurance business. Canara Bank holds 51 per cent stake in this JV. HSBC has a 26 per cent stake in the company.
The company plans to raise 2517 crore with the issue. Speaking to the issue and the company, MD & CEO Anuj Mathur of Canara HSBC Life said that the company works on the Bancassuration model. The company has 12 crore customers. The company’s cost is quite low. The company gives insurance cheaply. The company has been in profit since 2012-13. The company has also given dividend for 4 years. The company stands up on all financial models. Canara Bank is selling 14.5 per cent stake in IPO. PNB is selling 10 % stake in IPO. At the same time, HSBC insurance is selling 0.5 percent. 70 percent of the company’s business comes from Canara Bank. At the same time, 14 percent of the business comes from HSBC. Bancassurance holds 90 percent of the company’s business.
Anuj Mathur further said that the company’s VNB is close to 19 per cent. The company’s VNB is also increasing with growth. The company’s financial parameters are quite strong. The company has made more than 100 crore profits in 3 years. Even further, the company will continue to earn profits. Due to decrease in GST, the growth of insurance sector will be much higher. The company has also removed GST on premium. This has made the premium cheaper. He further said that the company’s business will increase considerably due to decrease in GST. GST reduction will not have much effect on profits. Where the need is needed, the commission will be reduced.
Let us tell you that Canara HSBC Life IPO is opened on 10 October. This IPO will be closed on 14 October. The IPO has a price band of Rs 100-106 and a lot size is 140 shares. This issue is completely offer for sale. Through this, the company plans to raise Rs 2,517 crore.