Canara Robeco AMC Files IPO Papers; Canara Bank, ORIX Corp to Sell Shares
Canara Robeco Asset Management Company has filed preliminary documents with the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO), aiming to raise funds through the public issue. According to the draft offer, the 4.98 crore equity shares in the IPO will consist entirely of an Offer for Sale (OFS) by the company’s promoters: Canara Bank and ORIX Corporation Europe NV, with no fresh issue of shares.
Canara Bank plans to sell 2.59 crore equity shares via OFS, while ORIX Corporation NV, a subsidiary of the Japanese conglomerate ORIX Corporation, will sell 2.39 crore shares. Consequently, the entire proceeds from the IPO will go to these selling shareholders, and Canara Robeco AMC will not receive any funds from the offering.
Highlights
Canara Robeco AMC files for an IPO, with no fresh issue of shares.
Canara Bank to sell 2.59 crore shares, while ORIX Corporation NV will sell 2.39 crore shares.
The proceeds from the IPO will go entirely to the selling shareholders.
Canara Robeco’s History and Current Operations
Incorporated in 1993, Canara Robeco AMC is a joint venture between Canara Bank and ORIX Corporation Europe NV, with a shareholding ratio of 51:49 percent. As of December 2024, the company managed 25 schemes, including 12 equity schemes, 10 debt schemes, and 3 hybrid schemes, with a quarterly average assets under management (QAAUM) of Rs 1,08,366 crore.
The AMC competes with listed entities like HDFC AMC, Nippon Life India AMC, Aditya Birla Sun Life AMC, and UTI AMC, all major players in the Indian asset management space. The company has consistently recorded strong financial performance in recent years.
Highlights
Canara Robeco was founded in 1993 as a 51:49 joint venture between Canara Bank and ORIX Corporation Europe NV.
The AMC manages 25 schemes with a quarterly average AUM of Rs 1,08,366 crore.
Competitors include HDFC AMC, Nippon Life India AMC, and Aditya Birla Sun Life AMC.
Healthy Financial Performance in Recent Years
Canara Robeco has shown strong financial performance, particularly in the 2024 fiscal year. For the nine months ending December 2024, the company reported a 40.3% growth in profit, reaching Rs 149 crore, and 35.9% revenue growth, reaching Rs 302.9 crore compared to the same period last year.
In the financial year ended March 2024, profit increased by 91.1% to Rs 151 crore, and revenue surged by 55.5%, reaching Rs 318 crore compared to the previous year.
Highlights
Profit for the nine months ended December 2024 grew by 40.3% to Rs 149 crore.
Revenue for the same period increased by 35.9% to Rs 302.9 crore.
In FY 2024, profit surged by 91.1%, and revenue grew by 55.5%.
IPO Process and Legal Counsel
The book running lead managers for the issue are SBI Capital Markets, Axis Capital, and JM Financial, while AZB & Partners is serving as the legal counsel for Canara Robeco AMC in the IPO process. This move marks an important step for the AMC as it prepares to go public, and the company expects that listing its shares will enhance visibility, increase brand recognition, and provide liquidity to its existing shareholders.
Highlights
SBI Capital Markets, Axis Capital, and JM Financial are the lead managers for the IPO.
AZB & Partners serves as the legal counsel.
Listing aims to enhance visibility, brand, and provide liquidity to existing shareholders.
