Canara Robeco AMC files draft IPO papers with SEBI; key details

Canara Robeco Asset Management Company Limited, India’s second-oldest asset management company (Source: CRISIL Report), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO).

The company is jointly promoted by Canara Bank and ORIX Corporation Europe N.V.

The IPO consists entirely of an offer for sale of up to 49,854,357 equity shares with a face value of Rs 10 each. The Offer for Sale includes up to 25,924,266 equity shares offered by Canara Bank and up to 23,930,091 equity shares offered by ORIX Corporation Europe N.V. (together referred to as the promoter selling shareholders”).

Canara Robeco AMC primarily engages in managing mutual fund schemes and providing investment advisory services focused on Indian equities. As of December 31, 2024, the company managed 25 schemes, comprising 12 equity, 10 debt, and three hybrid schemes, with a quarterly average Assets Under Management (AUM) of Rs 1,083.66 billion.

The AMC operates through a robust multi-channel distribution network, including third-party distributors, its own branches, and digital platforms, enabling it to effectively serve a diverse customer base.

Between March 31, 2022, and March 31, 2024, Canara Robeco AMC reported a compound annual growth rate (CAGR) of 34.75 per cent in its quarterly average asse under management (AUM), significantly outperforming the industry average of 18.8 per cent over the same period, as per a CRISIL report. The report also noted that, as of December 31, 2024, the company held the third-largest share of equity (including equity-oriented hybrid) AUM among the top 10 AMCs in India and the highest proportion of equity-oriented AUM.

The AMC had a wide retail customer base and as of December 31, 2024, the total monthly average assets under
Management generated from retail investors (inclusive of retail and high-net worth individual investors) were Rs 97,545 crore, accounting for 88.84 per cent of our total MAAUM.

Furthermore, as of December 31, 2024, the total folios invested in the mutual fund's schemes were 49.7 lakh out of which 49.2 lakh were individual customer folios, representing 98.99 per cent of the total folios. According to the CRISIL Report, as of December 31, 2024, the AMC had the third highest share of retail AUM amongst the top 20 AMCs in India and the highest share of retail AUM compared to top 10 AMCs.

The equity shares are proposed to be listed on both BSE Limited (“BSE”) and the National Stock Exchange of India Limited. SBI Capital Markets Limited, Axis Capital Limited, and JM Financial Limited are acting as the Book Running Lead Managers to the issue.