Canara Bank Approves Life Insurance IPO
Canara Bank, headquartered in Bengaluru, announced its approval to begin the process of reducing a 14.50% stake in its subsidiary, Canara HSBC Life Insurance Company, through an initial public offering (IPO), as per an exchange notification issued on Friday.
The IPO‘s progression is contingent upon approval from the Reserve Bank of India (RBI) and the department of financial services (DFS), the bank stated.
The bank indicated that decisions regarding the issue’s size, timing, and execution details will be determined later. It pledged to keep the exchanges informed of significant developments in accordance with regulatory requirements.
Earlier reports in January, citing managing director and CEO K Satyanarayana Raju, revealed the bank’s intention to list two subsidiaries, Canara Robeco AMC and Canara HSBC Life Insurance, during the fiscal year 2024-25.
Furthermore, the bank sanctioned plans to raise up to ₹4,000 crore through additional tier-I (AT-1) bonds in FY25, and ₹4,500 crore through tier-II bonds in the current financial year.
On Friday, Canara Bank’s shares concluded trading 3% higher at ₹118 apiece on the BSE.
