Canara Bank Board Approves IPO For Life Insurance Subsidiary
The IPO process is contingent upon obtaining approvals from the Reserve Bank of India (RBI) and the Department of Financial Services (DFS), according to the bank
Canara Bank, headquartered in Bengaluru, announced on Friday its approval to initiate the process of diluting a 14.50 per cent stake in its subsidiary, Canara HSBC Life Insurance Company, through an initial public offering (IPO). This information was disclosed in an exchange notification.
The IPO process is contingent upon obtaining approvals from the Reserve Bank of India (RBI) and the Department of Financial Services (DFS), according to the bank.
"The specifics regarding the size of the issue, the optimal timing and the modalities will be determined in due course. The bank will keep the exchanges informed of all significant developments related to this matter as required by applicable regulations," the notice stated.
In January, FE reported that Managing Director and CEO K Satyanarayana Raju had expressed the bank's interest in listing its two subsidiaries, Canara Robeco AMC and Canara HSBC Life Insurance, in FY25.
Additionally, the bank approved plans to raise up to Rs 4,000 crore through additional tier-I (AT-1) bonds in FY25 and Rs 4,500 crore through tier-II bonds in the current financial year.
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