New Delhi, Oct. 9 -- In the crowded IPO (initial public offering) market, Canara HSBC Life is quietly stepping into the spotlight. The bank-backed, public sector-led insurer has 13 years of consistent profits and is going public at a steep discount-roughly 45% cheaper than HDFC Life, one of India's largest and most trusted insurers.

The discount reflects the company's smaller scale, a ULIP-heavy product mix with lower margins, and the fact that this is a pure offer-for-sale IPO with no fresh capital for expansion-giving investors a rare chance to buy into a proven brand without paying a premium.

To capitalize on its non-core businesses, public sector lender Canara Bank is launching IPOs of two subsidiaries this week, including Canara HS...