Shares of Canara Bank surged over 5 percent and were just one percent away from their 52-week high of Rs 126.53 apiece on BSE. The buying interest was sparked after the bank announced its intention to dilute a 14.50 percent stake in its subsidiary, Canara HSBC Life Insurance Company Ltd, by listing the company on Stock Exchanges (BSE/NSE) through an Initial Public Offering (IPO).
As of 10:40 am, the shares were trading 5.38% higher at ₹124.35 on NSE.
“Canara Bank has approved the initiation of the process to dilute a 14.50 percent stake of the Bank in its subsidiary, M/s Canara HSBC Life Insurance Company Ltd, by listing the company on Stock Exchanges (BSE/NSE) through an Initial Public Offering (IPO),” the filing read.
The filing further stated that the same would be subject to approval from the Reserve Bank of India and the Department of Financial Services, Government of India.
Additionally, the size of the issue, opportune timing, and modalities of the offering will be decided in due course.
