Canara Robeco Asset Management Company (AMC) made a lukewarm debut on the primary indices on Thursday, listing at a 5.4% premium.
Shares of the AMC opened at ₹280.25 on both the NSE and the BSE, representing a 5.36% gain over its IPO price of ₹266 per share.
However, the stock quickly rose above ₹300. At the time of writing, the stock was trading at ₹306 on the NSE and ₹306.7 on the BSE.
IPO Receives Decent Investor Interest
Canara Robeco AMC’s initial public offering (IPO) garnered reasonable investor interest over its three-day subscription period, from October 9 to October 13. It was subscribed nearly 10 times, with the retail category recording a subscription of 1.91 times, QIBs were oversubscribed 25.92 times, and non-institutional investors (NIIs) saw 6.45x subscription.
The shares were offered at a price band of ₹253 – ₹266 per share, with the total IPO size at ₹1,326 crore, comprising only an offer for sale (OFS) of around five crore shares, and no fresh issue component.
In the OFS, Canara Bank sold 2,59,24,266 shares while Orix Corporation offloaded 2,39,30,091 shares.
The proceeds from the IPO will go to the selling promoters, with Canara Bank holding 51% and Orix Corporation holding the remaining stake in the AMC.
Ahead of the public subscription, the company raised over ₹750 crore from anchor investors, which included prominent institutional participants such as ICICI Prudential MF, HDFC MF, DSP MF, WhiteOak Capital, Mirae Asset MF, Allianz Global Investors, Amundi Funds, Matthews India Fund, Tata MF, Motilal Oswal MF, and Societe Generale.
The IPO was managed by SBI Capital Markets, Axis Capital, and JM Financial as book-running lead managers, with MUFG Intime India serving as the registrar.
Brokerage Says Canara Bank’s Distribution Network To Benefit The AMC
PL Capital initiated coverage on Canara Robeco Asset Management Company with a ‘Buy’ rating. The brokerage set a target price of ₹320, implying over 20% upside from the IPO price of ₹266, citing strong core earnings potential, higher equity share, and distribution advantages from its parent, Canara Bank.
Company Details
Canara Robeco AMC was established in 1993 and is among India’s oldest asset management firms. It acts as the investment manager for Canara Robeco Mutual Fund. Headquartered in Mumbai, the company is a joint venture between Canara Bank and Orix Corporation Europe N.V. (formerly Robeco Group N.V.).
For updates and corrections, email newsroom[at]stocktwits[dot]com. <