Canara Robeco IPO: Asset Manager Files Draft Papers, Canara Bank To Sell Up To 2.6 Crore Shares

Canara Bank-promoted asset management company Canara Robeco Ltd. filed draft papers for its initial public offering on Friday. The IPO will be a pure offer for sale, with promoters looking to offload up to 4.98 crore shares.

Canara Bank will sell up to 2.59 crore shares, while Orix Corporation Europe will be selling another 2.39 crore shares. Since this is a pure offer for sale, no funds from the proceeds will go to the company.

Canara Robeco is a 51-49 joint venture between Canara Bank and OCE. OCE was earlier known as Robeco Groep before being acquired by Japan's Orix Corp.

This means that if the OFS is followed through in its entirety, then Canara Bank will sell 13% stake in the company, and OCE will sell another 12%.

SBI Capital Markets Ltd., Axis Capital Ltd. and JM Financial Ltd. are the lead managers for the deal.

As of December 2024, Canara Robeco managed 25 schemes with a quarterly average asset under management of Rs 1.08 lakh crore.

The AMC was originally incorporated in 1993 as Canbank Investment Management Services to manage the assets of Canbank Mutual Fund. Then, in 2007, it changed its name to Canara Robeco when Robeco acquired a 49% stake in the company.

In Canara Bank's analyst call following its third quarter earnings for fiscal 2024, the lender's managing director K Satyanarayana Raju had said that the bank had already proposed a disinvestment in Canara Robeco and Canara HSBC Insurance Co.

"We are expecting that both the companies may come with their IPOs in the next financial year," Raju had said back then.

• Asset management revenue rose 42% to Rs 263 crore from Rs 185 crore

• Net profit rose 40% to Rs 149 crore from Rs 106 crore

The company's asset management revenue rose 42% for the fiscal 2024 as well, coming up to Rs 270 crore, while the profit almost doubled to Rs 151 crore. As of fiscal 2024, Canara Robeco's bottom-line has grown at a compounded annual growth rate of around 58% since 2022.

The company has paid out dividends worth Rs 45 crore for the nine-month period ended December 2024, and has been paying dividends since 2022.

Upon a successful listing, Canara Robeco will compete against HDFC Asset Management Co., Nippon Life India Asset Management Ltd., Aditya Birla Sun Life AMC Ltd. and UTI Asset Management Co.