BENGALURU, India – Canara HSBC Life Insurance Company’s initial public offering (IPO), valued at $283 million, was fully subscribed on the third and final day of bidding on Tuesday, driven primarily by strong demand from institutional investors.

The insurer, a joint venture between India’s Canara Bank and HSBC Insurance (Asia-Pacific) Holdings, attracted bids worth 18.97 billion rupees ($213.7 million) for 178.9 million shares, surpassing the 166.7 million shares offered within the 100–106 rupee price band, according to exchange data as of 1:30 p.m. IST.

Institutional Investors Drive Subscription

While retail participation remained subdued—with subscriptions just 0.35 times—the final-day surge by qualified institutional buyers (QIBs) was decisive. Nearly three times the allocated quota of 47.2 million shares was applied for by these investors. Anchor investors, including Societe Generale, ICICI Prudential Asset Management, and HDFC Mutual Fund, had already contributed 7.5 billion rupees last week, further strengthening the IPO’s demand.

Valuation and Market Context

The Canara HSBC Life IPO will value the company at up to 100.7 billion rupees ($1.14 billion) at the top of the price range. In comparison, larger Indian life insurers such as HDFC Life and SBI Life have market valuations of 1.7 trillion rupees and 1.8 trillion rupees, respectively.

The IPO was structured as an offer for sale, meaning that the proceeds will go to the selling shareholders rather than the company itself. Canara Bank is selling 137.8 million shares, HSBC Insurance (Asia-Pacific) 4.8 million shares, and Punjab National Bank 95 million shares.

IPO Activity in India’s Market

India’s primary market has seen a surge of IPO activity in 2025. This week alone, non-bank lender Tata Capital and consumer appliance maker LG Electronics India debuted, with LG Electronics India’s $1.3 billion IPO garnering nearly $50 billion in bids—making it India’s most subscribed billion-dollar IPO in almost 20 years. Analysts expect the 2025 primary market fundraise to surpass last year’s $20.5 billion record.

Other recent IPOs of Canara Bank-backed companies, such as Canara Robeco Asset Management, were also fully subscribed on their final day, highlighting strong institutional interest in Indian financial and insurance markets. Canara HSBC Life Insurance is expected to list shortly, with investor anticipation high.

Looking Ahead

The success of Canara HSBC Life’s IPO underscores the critical role of institutional investors in India’s IPO market and demonstrates the country’s growing prominence as a hub for capital market activity. Despite tepid retail participation, the strong demand from institutional buyers shows confidence in the growth potential of India’s life insurance sector and the stability of joint ventures with major banks.