Canara Robeco Asset Management Company Limited made a weak debut on the stock market on Wednesday, listing at a premium of around 5-6% over its issue price.
The stock opened at Rs 280.25 on both the NSE and BSE, compared to the issue price of Rs 266 per share.
For investors who got lucky with allotment, the listing brought moderate gains. It was not a blockbuster debut, but a decent start for one of India’s oldest and most trusted mutual fund houses.
Founded over three decades ago, Canara Robeco AMC is backed by Canara Bank and the Netherlands-based Robeco Group. It manages a wide range of mutual fund schemes across equity, debt, and hybrid categories, and has built a reputation for consistent performance and strong governance.
The company’s Rs 1,326 crore IPO was subscribed nearly 10 times overall, reflecting robust investor confidence. Institutional investors led the charge, with the Qualified Institutional Buyers (QIB) portion subscribed nearly 26 times, while the retail segment saw almost twice the demand.
WHY YOU SHOULD STAY INVESTED
According to experts, the listing was steady and sensible, which is a reflection of the company’s solid fundamentals rather than hype-driven frenzy.
“Canara Robeco has a credible brand, high-quality equity portfolio, and consistent growth in assets under management,” said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.
“Investors can book partial profits post-listing and hold the rest for the long term. The company’s fundamentals remain strong, and the mutual fund industry is poised for continued expansion.”
Brokerage PL Capital has initiated coverage with a Buy rating and a target price of Rs 320 per share-implying over 20% upside from the IPO price.
It expects the company to deliver a healthy 17% compound annual growth rate (CAGR) in core earnings between FY25 and FY28, outpacing its listed peers.
Still, investors should note that the IPO was a complete offer for sale (OFS), meaning the company won’t directly benefit from the funds raised. That could limit short-term expansion plans.
For long-term investors, though . As the mutual fund industry deepens its reach in India, Canara Robeco looks well placed to ride the next wave of investor participation.