Canara Bank to Dilute 14.50% Stake in Arm Via IPO

Canara Bank on Friday, May 31, approved the process of diluting a 14.50% stake in its subsidiary, Canara HSBC Life Insurance, by listing the company on stock exchanges through an initial public offer (IPO).

Key Takeaways from Canara Bank’s Stake Dilution:

• Approved dilution of a 14.50% stake in its subsidiary, Canara HSBC Life Insurance
• The dilution will be done by listing the company on stock exchanges through an initial public offer (IPO).

‘Canara Bank has accorded approval for initiating the process of diluting a 14.50% stake of the Bank in its subsidiary M/s Canara HSBC Life Insurance Company Ltd by listing the Company in Stock Exchanges (BSE/NSE) through an Initial Public Offer (IPO),’ the bank said in an exchange filing.

The decision for the same is subject to the approval of the Reserve Bank of India (RBI) and the Department of Financial Services.

The size of the issue, opportune time and modalities of the issue will be delivered in due course and the bank will update the exchanges of all material developments regarding the same, as and when required.

About Canara Bank:

Canara Bank was founded by Ammembal Subba Rao Pai in July 1906, at Mangalore, then a small port town in Karnataka. The bank has gone through various phases of its growth trajectory over the hundred years of its existence. Canara Bank saw phenomenal growth, especially post-nationalization in 1969, attaining the status of a national-level player in terms of geographical reach and clientele segments. In June 2006, the bank completed a century of operation in the Indian banking industry. Today, Canara Bank occupies a premier position in the community of Indian banks.

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