On May 31, the public sector lender Canara Bank announced on the markets that it had authorized a plan to use an initial public offering (IPO) to reduce a 14.50 percent share in the insurance unit Canara HSBC Life Insurance Company.
"Canara Bank has given permission to begin the process of listing the Company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO)," the bank stated. This will dilute the Bank's 14.50 percent shareholding in its subsidiary M/s Canara HSBC Life Insurance Company Ltd.
The Reserve Bank of India and the Department of Financial Services, both branches of the Indian government, must approve the same, the bank stated.
The bank stated that decisions on the issue's scope, timing, and specifics will be made in due course.
51 percent of the bank's insurance arm was owned by it at the conclusion of the 2024 fiscal year. Additionally, the insurance division reported a profit of Rs 113.31 crore for the January–March quarter of FY24.
By going public with the mutual fund subsidiary, the bank intends to sell off 13% of the equity shares in Canara Robeco Asset Management Company (CRAMC). The public sector lender said in a filing to markets that it has granted permission to begin the process of diluting a 13 percent interest through an initial public offering (IPO).
It further stated that permission from the Reserve Bank of India and the Department of Financial Services, which is part of the Ministry of Finance, is still pending for the planned IPO.
In December of last year, Canara Bank granted its in-principle clearance to begin listing its mutual fund subsidiary through an initial public offering.
