Canara Robeco AMC’s Rs 1,326 cr IPO to open Oct 9; price band fixed at Rs 253–266

New Delhi: Canara Robeco Asset Management Company on Monday fixed a price band of Rs 253-266 per share for its upcoming Initial Public Offering (IPO), giving a valuation of roughly around Rs 5,300 crore at the upper end.

The asset management company's Rs 1,326 crore IPO would open for subscription on October 9 and conclude on October 13. The one-day bidding for anchor investors would open on October 8, according to its public announcement.

The IPO is a completely 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 (previously known as Robeco Groep NV) -- will offload 2.59 crore shares and 2.39 crore shares, respectively.

Canara Bank owns a 51 per cent stake in Canara Robeco, while Orix Corporation holds the remaining stake in the AMC.

Since the IPO is entirely an OFS, the company will not receive any funds from the public issue, and the proceeds will go to the selling shareholders.

Canara Robeco's primary activities include managing mutual funds and providing investment advice on Indian equities. It is the country's second oldest asset manager. The state-run lender had floated the company in 1993, partnering with Robeco, now part of Orix, in 2007.

Canara Robeco operates in a competitive space alongside listed players such as HDFC Asset Management Company, Nippon Life India Asset Management, and UTI Asset Management Company.

In terms of issue allocation, 50 per cent of the IPO is reserved for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

SBI Capital Markets, Axis Capital and JM Financial are the book running lead managers to the issue. Shares of Canara Robeco are expected to list on the bourses on October 16.

In December 2024, Canara Bank announced that it had received the Reserve Bank's approval for a proposal to divest the bank's stake in life insurance and mutual fund ventures.

The IPO of Canara HSBC Life Insurance Company -- a complete OFS of 23.75 crore equity shares-- would open for public subscription on October 10 and conclude on October 14.