MUMBAI: State-run lender Canara Bank is expecting the final clearance from the Department of Financial Services for the initial public offerings (IPOs) of two of its arms — Canara HSBC Life Insurance and Canara Robeco Asset Management Company — within a fortnight.
The Bengaluru-based lender bank holds a 51% stake each in both the insurance as well as the AMC subsidiaries and wants to pare at least 14.5% in the insurance arm and 13% in AMC arm through the IPOs.
“We have sent separate applications for IPOs for both our subsidiaries to the department of financial services, and we expect the approval in fortnight,” chief executive and managing director of the bank, Satyanarayana Raju, told TNIE over the weekend.
If the approvals come in as expected, the bank is planning to hit the primary market in the March quarter with the AMC sale and in the June 2025 quarter for the life arm issue.
“The request for proposal process is already completed for Canara Robecco AMC share sale. The timeline will remain same for both the IPOs — fourth quarter for the AMC arm the first quarter for the life JV-- as we expect the DFS approval in a fortnight” Raju said.
Canara Bank last December gave an in-principle approval to start the process of listing its mutual fund and life insurance arms by initial share sale.
In the September quarter, Canara Robeco reported a Rs 80.3 crore net profit. Of this, the share of Canara Bank was Rs 40.93 crore.