The primary market is buzzing with action and an especially crucial one for Canara Bank. The group is tapping investors through two IPOs – Canara Robeco Asset Management Company (AMC) and Canara HSBC Life Insurance.
Both offers are entirely offer-for-sale (OFS) issues, allowing the PSU bank to pare its holdings. But for investors, the question is – which of the two Canara-backed issues looks more attractive? Let’s take a look at key details of the issue –
Canara Robeco Vs Canara HSBC Life IPO: Timelines and offer details
The Canara Robeco AMC IPO opened for subscription on October 9 and will close on October 13. It is a book build issue of Rs 1,326.13 crores
Canara HSBC Life Insurance IPO opened a day later, on October 10, and will close on October 14. It is a book build issue of Rs 2,517.50 crores.
Both IPOs are 100% offer-for-sale issues. This means that no fresh capital is being raised.
In the Robeco AMC issue, promoters Canara Bank and ORIX Corporation Europe N.V. are selling up to 4.98 crore shares.
Meanwhile, on the other hand, the Canara HSBC Life IPO involves the sale of 23.75 crore shares by Canara Bank, HSBC Insurance (Asia-Pacific) Holdings, and Punjab National Bank.
Canara Robeco Vs Canara HSBC Life IPO: Price band and lot size of the issue
The Canara Robeco AMC IPO has a price band set between Rs 253–266 per share, with a lot size of 56 shares.
On the other hand, Canara HSBC Life Insurance has fixed its price band between the range of Rs 100-106 per share, with a lot size of 140 shares.
Now looking at the upper end, investors would need roughly Rs 14,896 to apply for one lot of Canara Robeco and Rs 14,840 for one lot of Canara HSBC Life .
Canara Robeco Vs Canara HSBC Life IPO: Promoter stake sales and gains
For Canara Bank, these two IPOs represent major monetisation opportunities. In Canara Robeco AMC, the bank is selling 2.59 crore shares, likely earning around Rs 690 crore.
On the other hand, in Canara HSBC Life Insurance, Canara Bank is divesting 13.77 crore shares. This is equivalent to a 14.5% stake. Meanwhile PNB is offloading 9.5 crore shares (10% stake). Post-IPO, Canara Bank will hold about 36.5%, and PNB will retain 10% in the life insurer.
Canara Robeco Vs Canara HSBC Life IPO: Objectives and fund utilisation
As both issues are purely OFS, neither company will receive proceeds from the IPO. The raised funds will entirely go to selling shareholders.
Investors should note that since no new equity is being issued, there won’t be any dilution in existing share capital or immediate balance sheet impact on the companies.
Canara Robeco Vs Canara HSBC Life IPO: Financial position and sector outlook
Canara Robeco AMC operates in the mutual fund space. It manages assets through equity, debt, and hybrid schemes. Backed by Canara Bank’s distribution network and ORIX/Robeco’s investment expertise, the company benefits from an asset-light model and also strong retail participation.
Now, looking at Canara HSBC Life Insurance, it is among the top three life insurers linked to public sector banks. Furthermore, the company competes with established players like SBI Life, HDFC Life, and ICICI Prudential.
