Canara Robeco AMC Submits Draft Papers to SEBI for IPO

Canara Robeco Asset Management Company Limited has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO).

Offer Details

The IPO will consist of an offer for sale (OFS) of up to 4.98 crore equity shares with a face value of ₹10 each. Canara Bank plans to sell up to 2.59 crore shares, and ORIX Corporation Europe N.V. plans to sell up to 2.39 crore shares. No fresh issue of shares is proposed. The equity shares are intended to be listed on both the BSE and the NSE.

SBI Capital Markets Limited, Axis Capital Limited, and JM Financial Limited are the book-running lead managers for the IPO.

Company Overview

Canara Robeco Asset Management Company is jointly promoted by Canara Bank and ORIX Corporation Europe N.V. It is the second-oldest asset management company in India, based on a CRISIL report. In December 2024, Canara Bank received approval from the Reserve Bank of India (RBI) to divest a 13% stake in the company.

The company manages 25 schemes as of December 31, 2024, which include 12 equity schemes, 10 debt schemes, and 3 hybrid schemes. The quarterly average assets under management (QAAUM) stood at ₹1.08 lakh crore as of the same date.

Growth and Distribution

Between March 31, 2022, and March 31, 2024, the company’s QAAUM grew at a compound annual growth rate (CAGR) of 34.75%, compared to the industry average of 18.8%, according to CRISIL.

Canara Robeco distributes its products through third-party distributors, its own branches, and digital platforms.

Read more: Upcoming IPO: SEBI Approved Continuum Green Energy ₹3,650 Crore IPO

Listed Peers

According to the DRHP, comparable listed asset management companies include HDFC AMC (P/E 50.17), Nippon Life India AMC (P/E 38.25), Aditya Birla Sun Life AMC (P/E 24.69), and UTI AMC (P/E 18.85).

Conclusion

Established in 1993 as Canbank Mutual Fund, Canara Robeco MF is the second-oldest mutual fund in India. Following a partnership with Robeco (now part of Orix Corporation) in 2007, it adopted its current name. The IPO is subject to regulatory approvals and market conditions.

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