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By Nitin Negandhi
Canara Robeco Asset Management Co. Ltd.
Left behind in the growth story:
Canara Robeco was established in 1993 as an Asset Management Company (AMC) for Canara Robeco Mutual Fund and provides investment advisory services related to Indian equities. Canara Robeco Mutual Fund is the second oldest mutual fund in India, after SBI Mutual Fund (SBIMF). Today, SBIMF commands 16.2% of the average assets under management (AUM) of the industry, while Canara Robeco accounts for just 1.6%. Canara Robeco ranks 17th among AMCs, whereas SBIMF is number one. Newer entrants such as Mirae Asset (2.8%), Bandhan Mutual Fund (2.5%), and Edelweiss Mutual Fund (2.1%) are ahead of Canara Robeco in market share.
IPO details:
| Name of the Company | Canara Robeco AMC | |
| Issue Open | 09-10-2025 | |
| Issue closes | 13-10-2025 | |
| Issue Size | ||
| Offer for Sale | Rs. in cr. | 1,326 |
| Face Value per share | Rs | 10 |
| Upper issue price band | Rs | 266 |
Massive bonus issue before the Offer for Sale (OFS):
The company issued 3:1 bonus shares in September 2024, months before the OFS, resulting in an increase in its capital base from Rs. 49.85 crore to Rs. 199.41 crore. The public issue is entirely an OFS of 4.98 crore shares, aimed at getting the shares listed and enabling promoters to monetize a portion of their investment. Post-OFS, the promoter’s stake will dilute from 100% to 75%.
| Post OFS | Pre OFS | Post OFS | Pre OFS | Average cost of holding | |
| No of shares (crore) | % of holding | Rs / share | |||
| Canara Bank | 7.58 | 10.17 | 38.0% | 51.0% | 2.0 |
| Orix | 7.38 | 9.77 | 37.0% | 49.0% | 12.9 |
| Public | 4.98 | 25.0% | |||
| 19.94 | 19.94 | 100.0% | 100.0% | ||
Financial performance:
With twenty-five schemes under management, the AMC recorded a 28.6% growth in its quarterly average AUM between 2023 and 2025. It has delivered a robust CAGR of 40.5% in revenue to Rs. 404 crore and 55.4% CAGR in net profit. For the three months ended June 2025, topline and bottom line grew 19% YoY compared to Q1 June 2024.
Canara Robeco manages equity, debt and hybrid products with over 90% of its AUM from equity-oriented schemes. Depressed equity market conditions have constrained net inflows into equity funds. One of its equity schemes and eight debt schemes underperformed relative to their respective benchmark indices over the one-year period ending Fiscal 2024.
| Financials for the period / year ended | Jun-25 | Jun-24 | Mar-25 | Mar-24 | Mar-23 | CAGR (%) | |
| No of months | 3 | 3 | 12 | 12 | 12 | ||
| Income from operations | Rs. in cr. | 121 | 102 | 404 | 318 | 205 | 40.5% |
| Net Profit/ (-) Loss | Rs. in cr. | 61 | 51 | 191 | 151 | 79.0 | 55.4% |
| Equity capital | Rs. in cr. | 199.4 | 49.9 | 49.9 | 49.9 | 49.9 | |
| EPS | Rs. | 3.1 | 10.2 | 38.3 | 30.3 | 15.8 | |
| Diluted EPS on post bonus capital | 9.6 | ||||||
Peer comparison:
Listed competitors in the mutual fund space include HDFC Asset Management Company (HDFC AMC), Nippon Life Asset Management (Nippon Life AMC), Aditya Birla Sun Life AMC, and UTI AMC.
| Peer Comparison FY25 | Canara Reboco AMC | HDFC AMC | Nippon Life AMC | UTI AMC | |
| Income from operations | Rs. in cr. | 404 | 3,498 | 2,065 | 1,317 |
| Net Profit | Rs. in cr. | 191 | 2,461 | 1,252 | 654 |
| Net Margin | % | 47.2% | 70.4% | 60.6% | 49.7% |
| Asset under management (Dec 2024) | Rs. in cr. | 1,08,366 | 7,87,434 | 5,69,954 | 3,53,412 |
| Revenue as % to AUM | % | 0.37% | 0.44% | 0.36% | 0.37% |
| Net profit as % to AUM | % | 0.18% | 0.31% | 0.22% | 0.19% |
| Market Cap (Mcap) | Rs. in cr. | 5,304 | 1,19,680 | 56,604 | 16,880 |
| Market cap as % to AUM | 5% | 15% | 10% | 5% | |
| EPS (diluted) | Rs. | 10 | 116 | 21 | 53 |
| P/e ratio | No of times | 28 | 48 | 42 | 25 |
| Face Value | Rs. | 10 | 5 | 10 | 10 |
| Current market price (CMP) | Rs. | 266 | 5,592 | 889 | 1,317 |
| IPO Price | 266 | 1,100 | 252 | 554 | |
| IPO month | Oct-25 | Jul-18 | Oct-17 | Sep-20 | |
| Upper price band | |||||
Canara Robeco has priced its upper band at Rs. 266, implying a PE ratio of 28 times, which is in line with UTI AMC but lower than private players such as HDFC AMC and Nippon Life AMC. In the short term, considering the flood of IPOs and competition from private players, investors should not expect significant listing gains. Long-term prospects remain favorable.
Disclaimer:
The writer is not a SEBI-registered analyst. He and his friends and relatives may or may not participate in the IPO. This write-up is for educational purposes only, and investors should consult their financial advisors before investing. Grey market premium is an indicator and should not be solely relied upon.
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