Canara Robeco AMC & Canara HSBC Life IPOs: Should you invest? Anil Singhvi shares his take

Market expert and Zee Business Managing Editor Anil Singhvi has shared his insights on two major ongoing IPOs, Canara Robeco Asset Management Company and Canara HSBC Life Insurance.

The Canara Robeco AMC IPO, valued at Rs 1,326 crore, is open for subscription and will conclude on October 13, while the Canara HSBC Life Insurance IPO, worth Rs 2,516 crore, will close on October 14.

Canara Robeco AMC: Singhvi’s View

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Speaking on Canara Robeco AMC, Singhvi said, “This IPO is suitable for risk-taking investors looking to invest for the long term. For short-term gains, it’s better to stay away because making money on listing is difficult these days. If it happens, consider it luck. Otherwise, invest in your portfolio in the long term.”

He highlighted the positives of Canara Robeco AMC, noting that it is India’s second-oldest asset management company, with strong promoters in Canara Bank and ORIX Corporation, Japan.

Singhvi also emphasised the experienced management team, led by MD Rajneesh Narula, and the company’s strong business model, as 91 per cent of its assets under management come from equity schemes, which are typically long-term funds.

Furthermore, 88 per cent of the money comes from retail investors, indicating broad-based confidence in the AMC’s operations.

Singhvi added that the company benefits from Canara Bank’s distribution network, and its valuations are reasonable compared to peers like UTI AMC.

He noted there are no major negatives, with only a normal risk factor inherent to the business.

Canara Robeco AMC IPO Details

The Canara Robeco AMC IPO is a completely an Offer for Sale (OFS) of 4.98 crore equity shares at a price band of Rs 253–266 per share, giving a valuation of roughly Rs 5,300 crore at the upper end.

Canara Bank and ORIX Corporation are offloading 2.59 crore and 2.39 crore shares, respectively. Since it is entirely an OFS, the company will not receive any funds from the issue, which will go to the selling shareholders.

Canara HSBC Life Insurance: Singhvi’s View

On the Canara HSBC Life Insurance IPO, Singhvi shared a similar long-term perspective, stating, “Risk-taking investors can apply for this IPO with a long-term mindset. Remember, insurance is a long-term business model. Short-term investment is not advisable here.”

He praised the strong promoters, Canara Bank and HSBC Group, the experienced management, and the company’s ability to become profitable within the first five years, which is faster than most insurance companies.

Singhvi also highlighted the bank-led business model, which provides a strong distribution channel. He noted that valuations are reasonable compared to other listed peers, providing modest upside for long-term investors.

Canara HSBC Life Insurance IPO Details

The Canara HSBC Life IPO is also a complete OFS, offering 23.75 crore shares at a price band of Rs 100–106, targeting a valuation of about Rs 10,000 crore at the upper end.

Canara Bank is selling 13.77 crore shares, HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 4.75 million shares, and Punjab National Bank plans to sell 9.5 crore shares.

Since it is entirely an OFS, all proceeds go to selling shareholders. Half of the issue is reserved for QIBs, 35 per cent for retail investors, and 15 per cent for non-institutional investors.