Canara Robeco AMC Sets Price Band for Rs 1,326 Crore IPO
New Delhi: Canara Robeco Asset Management Company on Monday announced a price band of Rs 253-266 per share for its upcoming Initial Public Offering (IPO), implying a valuation of approximately Rs 5,300 crore at the upper end.
The Rs 1,326 crore IPO will open for subscription on October 9 and close on October 13. Anchor investors can bid a day earlier, on October 8, according to the company’s public announcement.
The offering is entirely an Offer For Sale (OFS) of 4.98 crore equity shares, with no fresh issue component. Under the OFS, promoters Canara Bank and ORIX Corporation Europe NV (formerly Robeco Groep NV) will sell 2.59 crore and 2.39 crore shares, respectively. Canara Bank holds a 51% stake in Canara Robeco, while Orix Corporation owns the remaining stake.
As the IPO is solely an OFS, the company will not receive any proceeds; the funds will go to the selling shareholders.
Canara Robeco primarily manages mutual funds and provides investment advice on Indian equities. It is the country’s second-oldest asset manager, established in 1993 by Canara Bank in partnership with Robeco, which later became part of Orix in 2007. The AMC competes with listed peers including HDFC Asset Management, Nippon Life India Asset Management, and UTI Asset Management.
The IPO allocation sets aside 50% for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. SBI Capital Markets, Axis Capital, and JM Financial are the book-running lead managers. Canara Robeco’s shares are expected to list on the stock exchanges on October 16.
In related news, in December 2024, Canara Bank received Reserve Bank approval to divest its stakes in life insurance and mutual fund ventures. The IPO of Canara HSBC Life Insurance Company—a full OFS of 23.75 crore equity shares—is scheduled for October 10-14.
