IPO Watch: Canara Robeco Asset Management Company files draft papers for IPO with SEBI

IPO Watch: Canara Robeco Asset Management Company Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

The company is recognised as the second oldest asset management firm in India, according to the CRISIL Report. Canara Bank along with ORIX Corporation Europe N.V are the company's promoters. In December of last year, Canara Bank, announced that it has been granted permission by the Reserve Bank of India (RBI) to sell off its 13% stake in Canara Robeco Asset Management Company Ltd.

The main operations of the AMC include the management of mutual funds and offering investment advice on Indian stocks. As of December 31, 2024, it oversees 25 schemes, which consist of 12 equity schemes, 10 debt schemes, and three hybrid schemes, with an average quarterly AUM of ₹1,083.66 billion on the same date.

As of December 31, 2024, it oversees 25 schemes, which consist of 12 equity schemes, 10 debt schemes, and three hybrid schemes, with an average quarterly AUM of ₹1,083.66 billion on the same date.

The firm utilises a diverse sales and distribution network that enables it to provide products and services to its clientele. This network comprises third-party distributors, sales conducted through its branches, and online platforms.

As per the DRHP, the company's listed peers are HDFC Asset Management Company Ltd (with a P/E of 50.17), Nippon Life India Asset Management Ltd (with a P/E of 38.25), Aditya Birla Sun Life AMC Ltd (with a P/E of 24.69) , and UTI Asset Management Company Ltd (with a P/E of 18.85).

IPO details

The issue entails an Offer for Sale (OFS) of as many as 49,854,357 equity shares, each with a face value of ₹10, which includes a maximum of 25,924,266 equity shares from Canara Bank and up to 23,930,091 equity shares from ORIX Corporation Europe N.V.

SBI Capital Markets Limited, Axis Capital Limited, and JM Financial Limited serve as the Book Running Lead Managers for this offering.

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