After LG and Tata Capital's IPOs, another company makes a big entry today.

Canara HSBC Life Insurance IPO: The Canara HSBC Life Insurance IPO will open for subscription today, Friday, October 9th. Bids can be submitted until October 14th. The price band for the IPO has been fixed at ₹100 to ₹106 per share. The lot size for the Canara HSBC Life IPO is 140 equity shares. Consequently, investors will need to invest a minimum of ₹14,840. Shares for Canara HSBC Life Insurance's IPO were allotted to anchor investors on Thursday, October 9.

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IPO is entirely an offer-for-sale.

The IPO in the mainboard segment is of ₹2,517.5 crore, which is entirely an offer for sale (OFS), comprising 237.5 million equity shares from promoters and individual investors. Under the offer-for-sale window, Canara Bank will sell 137.7 million equity shares, representing a 14.5% stake. HSBC Insurance (Asia-Pacific) Holdings Limited will sell 4.75 million shares, representing a 0.5% stake. Punjab National Bank intends to sell 95 million equity shares, representing a 10% stake. After the stake sale, Canara Bank will hold a 36.50% stake in HSBC Life Insurance, HSBC Insurance will hold a 25.50% stake, and PNB will hold a 10% stake.

What does the GMP indicate?

Today, Canara HSBC Life Insurance is the third-largest insurance provider among public sector banks in the country. It was established in 2007. In the first quarter of the current financial year, the company earned a profit of ₹23.4 crore, a 25.2% increase from ₹18.7 crore in the same period last year. Regarding its gray market premium (GMP), on Thursday, Canara HSBC Life's unlisted shares were trading at a premium of ₹10 in the gray market. This has remained unchanged for the past three days. Based on the current GMP, a 9.43% profit is expected at the time of listing.

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When will the shares be allotted?

The IPO will have a 50% reserve for qualified institutional buyers, 35% for retail investors, and 15% for NIIs. Shares for the Canara HSBC IPO will be allotted on Wednesday, October 15, and the company will open refunds on Thursday, October 16. The shares will be credited to the allottees' demat accounts on the same day after the refund. Canara HSBC shares are expected to be listed on the BSE and NSE on Friday,