Canara Bank will reduce its 14.50 percent stake in Canara HSBC Life Insurance Company through an IPO.
Canara Bank has informed the stock exchanges that it has started the process of reducing its 14.50 percent stake in Canara HSBC Life Insurance Company.
This means that the insurance company will launch its IPO.
Canara Bank is a major government-owned bank and one of the largest in the sector.
Canara Bank holds 51 per cent stake in the insurance company
Canara Bank has mentioned that details such as the size, timing, and other aspects of Canara HSBC Life Insurance Company’s plans are not yet finalized.
A decision will be made later regarding this matter. As of the end of FY24, Canara Bank held a 51 percent stake in this insurance company.
In the March quarter of FY24, the insurance company recorded a profit of Rs 113.31 crore.
Additionally, Canara Bank is also planning to sell its stake in its asset management company (AMC) Canara Robeco Asset Management Company (CRAMC).
Plan to sell stake in mutual fund company too
Canara Bank plans to sell its 13 percent stake in CRAMC.
They intend to do this by launching an IPO for the AMC and listing it on the stock market.
Canara Bank has informed the stock exchanges about this plan and mentioned that the proposal to sell 13 percent in the AMC and launch an IPO has been approved.
However, approval from the RBI and the Department of Financial Services of the Finance Ministry is also needed for the IPO to proceed.
AMC company will come with IPO
Canara Bank approved the proposal to sell its stake in its mutual fund subsidiary last December.
They plan to do this by launching an IPO for the AMC.
