Canara Robeco Asset Management Company has fixed a price band of Rs 253-266 per share for its upcoming Initial Public Offering (IPO), valuing the company at approximately Rs 5,300 crore at the upper end. The IPO, amounting to Rs 1,326 crore, is scheduled to open for subscription on October 9 and close on October 13.
Ahead of the public subscription, the one-day bidding for anchor investors will take place on October 8, as per the company’s public announcement.
This IPO is a complete Offer For Sale (OFS) of 4.98 crore equity shares, with no fresh issue component. Under the OFS, the promoters—Canara Bank and ORIX Corporation Europe NV (formerly Robeco Groep NV)—will sell 2.59 crore shares and 2.39 crore shares, respectively. Canara Bank currently holds a 51% stake in Canara Robeco, while ORIX Corporation owns the remaining stake in the asset management company.
Since the IPO is entirely an OFS, Canara Robeco will not receive any funds from the public issue. Instead, the proceeds from the sale will go directly to the selling shareholders.
Canara Robeco primarily engages in managing mutual funds and providing investment advice on Indian equities. It is recognized as the country’s second oldest asset manager. The state-run lender, Canara Bank, originally founded the company in 1993 and later partnered with Robeco—now part of ORIX—in 2007.
Operating in a highly competitive space, Canara Robeco faces competition from established listed players such as HDFC Asset Management Company, Nippon Life India Asset Management, and UTI Asset Management Company.
The IPO allocation is divided as follows: 50% reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. SBI Capital Markets, Axis Capital, and JM Financial are appointed as the book running lead managers for this issue.
Shares of Canara Robeco are expected to list on stock exchanges on October 16.
In a related development, Canara Bank announced in December 2024 that it had received approval from the Reserve Bank of India to divest its stakes in life insurance and mutual fund ventures. The IPO of Canara HSBC Life Insurance Company, a complete OFS involving 23.75 crore equity shares, is scheduled to open for public subscription from October 10 to October 14.
https://www.freepressjournal.in/corporate-gallery/canara-robeco-amcs-rs-1326-cr-ipo-to-open-on-oct-9
