Free Equity Delivery
Flat ₹10 per Trade in Intraday & F&O
Published on Monday, October 13, 2025 by Chittorgarh.com Team
Incorporated in 2007, Canara HSBC Life Insurance Company Limited is a private life insurance company in India, jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited. The company manages the third-highest AUM among PSU banks.
ICICI Direct assigned a “Subscribe for listing gains” rating, citing a fair valuation at ~1.6x Q1FY26 EV and limited downside risk.
BP Wealth also gave a “Subscribe” call, stating that the valuation at a P/EV multiple of 1.6x (FY25) is attractive versus peers, suggesting potential undervaluation. The steady rise in EV—from ₹4,271.9 crore in FY23 to ₹6,352.6 crore as of June 2025—reflects consistent value creation and disciplined capital management.
Arihant Capital Markets Ltd recommended subscribing with a long-term perspective. Ventura echoed a similar view, emphasizing the company’s customer-centric approach, sound governance, and digital initiatives driving sustainable growth. Read more - Canara HSBC Life IPO Review & Recommendations.
The IPO, open from 10 October 2025, has a price band of ₹100–₹106 per share, aiming to raise up to ₹2,516 crore through an offer for sale. At the upper price band, the company’s valuation stands at approximately ₹10,070 crore, translating to a P/E of 81.3x FY25 EPS, broadly in line with the industry average of 79.37x.
In terms of growth, PAT rose from ₹91.19 crore in FY23 to ₹116.98 crore in FY25, a CAGR of 13.26%, supported by an 18% Return on Embedded Value (RoEV). Its bancassurance channel contributes over 92% of new business premium, leveraging the 15,700+ branch network of its partner banks, including Canara Bank’s 9,849 branches catering to 11.7 crore customers.
With India’s life insurance sector still underpenetrated, Canara HSBC Life is strategically positioned to tap this growth through bancassurance expansion, diversified products, and digital scale-up. Backed by strong promoters, consistent EV growth, and improving persistency ratios, the IPO offers a compelling long-term investment opportunity in India’s growing insurance market.
RHP