Canara Robeco IPO: From Business, Financials To Risks — Check Key Details Before Investing: Anand Rathi Report

Canara Robeco AMC's Rs 1326.1-crore issue is an entirely offer-for-sale of 4.98 crore shares. Investors can place bids starting from a minimum of 56 shares and in multiples thereafter of face value of Rs 10 each meaning the minimum investment is Rs 14,896, based on the upper price band..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Canara Robeco Asset Management Co. Ltd. will launch its initial public offering today and the offer closes on Oct. 13. The company has fixed the price band in the range of Rs 253 and 256 per equity share. Investors can place bids starting from a minimum of 56 shares and in multiples thereafter of face value of Rs 10 each meaning the minimum investment is Rs 14,896, based on the upper price band.The Rs 1326.1-crore issue is an entirely offer-for-sale of 4.98 crore shares. Since the IPO is entirely an OFS, proceeds from the offer will go directly to the selling shareholders. SBI Capital Markets Ltd., Axis Capital Ltd., JM Financial Ltd. are the book-running lead managers for the public issue while MUFG Intime India Pvt. Ltd. is the registrar to the offer..Strengths:Recognized brand with legacy of operations and established parentage.Operations led by professional management team and established corporate governance standards.Well-diversified equity products mix backed by research-driven investment process.Pan-India multi-channel sales and distribution network.Expanding proportion of AUM contributed by individual investors and SIP contributions.Integrated technology-led operations with a well-established digital eco-system..Key Strategies:Focus on delivering sustained investment performance through a robust research-driven process.Grow their distribution and geographical presence.Focus on Diversifying their AUM across Asset-Class and Product Offerings.Focus on leveraging technology to improve operational efficiency..Key Risk: One of their equity schemes and nine of their debt schemes have underperformed relative to their respective benchmark indices over a one calendar year ended June 30, 2025. If their investment schemes underperform, their AUM could decrease, negatively impacting their results of operations. Business is subject to extensive regulation, including periodic inspections by the Securities and Exchange Board of India (“SEBI”), and their non-compliance with existing regulations or SEBI’s observations could expose them to penalties and restrictions in the business that they can undertake.Unfavourable market changes and economic downturns may result in customer withdrawals or a decrease in customer transactions, resulting in a decline in their assets under management and management fees, which could significantly and negatively influence their revenue from operations, business prospects, financial conditions, and results of operations.The performance of their equity-oriented schemes has a significant impact on their assets under management and consequently their revenue from operations. As of June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024, and March 31, 2023, 91.17%, 92.34%, 91.69%, 91.66% and 88.43% of their quarterly average assets under management were from equity-oriented schemes. Underperformance by their equity-oriented schemes may have a disproportionate adverse impact on their business and revenue. As of June 30, 2025 and June 30, 2024 and March 31, 2025, March 31, 2024, and March 31, 2023, 73.45%, 75.82%, 73.63%, 76.24% and 78.04% of their monthly average assets under management were generated from third-party distributors. If company is unable to maintain their existing relationship with third-party distributors or attract new distributors, business, competitiveness, results of operations and financial condition may be adversely impacted.Company is dependent on several key personnel, including their Key Managerial Personnel and Senior Management as well as their investment team, and the loss of or inability to attract or retain such persons could adversely affect business, financial condition, results of operations and cash flows..Valuation: Canara Robeco Asset Management Company is a well-established and trusted brand with a long-standing legacy and strong institutional backing. Its operations are guided by a seasoned professional management team and supported by robust corporate governance practices. The company offers a well-diversified portfolio of equity products driven by a rigorous, research-based investment approach. It also benefits from an extensive, multi-channel sales and distribution network spread across India. Additionally, it continues to witness steady growth in the share of AUM contributed by individual investors and through systematic investment plan inflows. At the upper price band company is valuing at P/E of 27.8x FY25 earnings and market cap of Rs 53,045 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “Subscribe-Long Term” rating to the IPO..Click on the attachment to read the full report:.Canara Robeco IPO GMP: What Does Grey Market Signal Ahead Of Oct. 9 Launch?.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Canara Robeco IPO: From Business, Financials To Risks — Check Key Details Before Investing: Anand Rathi Report

Upon listing Canara Robeco will compete with other listed entities like HDFC AMC., Nippon Life, Aditya Birla Sun Life AMC and UTI AMC.

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