Canara Robeco Asset Management Company Files Updated DRHP with SEBI, Poised for IPO Launch

Canara Robeco Asset Management Company Limited (AMC), a leading joint venture between Canara Bank and Robeco Groep N.V., has made a significant move towards its initial public offering (IPO) by filing an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This filing marks a crucial step in the asset management firm’s journey towards becoming a publicly traded company in the Indian capital markets.

 

IPO Details and Structure

The IPO structure is an Offer-for-Sale (OFS) involving 4.98 crore equity shares, with no fresh equity being issued. This implies that the proceeds from the IPO will entirely go to the selling promoters and shareholders, allowing them to partially divest their holdings. Canara Bank, which currently holds a 51% stake in Canara Robeco AMC, plans to sell approximately 2.59 crore shares, while its foreign partner ORIX Corporation Europe N.V., holding 49%, intends to offload about 2.39 crore shares.

 

The equity shares of Canara Robeco AMC are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE), further enhancing the company’s visibility and access to capital.

 

Company Background and Growth Trajectory

Established in 1993 as Canbank Investment Management Services, the company originally managed the assets of Canbank Mutual Fund, entirely owned by Canara Bank. In 2007, Canara Bank sold 49% of its stake to ORIX Corporation Europe N.V., leading to the rebranding of the firm as Canara Robeco Asset Management Company. Today, it stands as India’s second oldest mutual fund house, managing a diverse range of products across equity, debt, and hybrid categories.

 

As of December 31, 2024, Canara Robeco AMC managed a portfolio spanning 25 schemes, including 12 equity schemes, 10 debt schemes, and three hybrid schemes. Its quarterly average assets under management (QAAUM) stood at ₹1,083.66 billion, boasting a compound annual growth rate (CAGR) of 34.75% between March 2022 and March 2024, significantly higher than the industry average of 18.8%, according to CRISIL reports.

 

Canara Robeco AMC holds the third highest share of equity-oriented assets under management among the top 10 AMCs in India and the highest share of equity-oriented AUM as of the last fiscal year.

 

Market and Regulatory Approvals

The filing of the updated DRHP follows SEBI's approval and observations received in early September 2025, which clear the path for Canara Robeco AMC to launch its IPO and finalize the prospectus details, including setting the price band and IPO dates. This regulatory nod is a crucial milestone indicating SEBI’s satisfaction with the company’s disclosures and readiness for public listing.

 

SBI Capital Markets Limited, Axis Capital Limited, and JM Financial are appointed as the Book Running Lead Managers for the IPO, facilitating the offering and investor roadshows.

 

Strategic Significance for Canara Bank

The IPO of Canara Robeco AMC represents a strategic divestment move by Canara Bank, aligned with the government’s directives to reduce stake in its subsidiaries to 30% by October 2029. The listing is expected to unlock shareholder value and provide liquidity to the promoters while enabling the AMC to function with greater operational independence and access to capital market resources.

 

Industry Context

India’s asset management industry is witnessing robust growth, driven by increased investor awareness, favorable government policies, and rising retail participation in mutual funds. The IPO of Canara Robeco AMC adds to the list of asset management companies going public in recent years, reflecting market confidence and bullish prospects for the sector.

 

Canara Robeco AMC’s strong pedigree, performance record, and diverse product portfolio position it well to capitalize on market opportunities and broaden its investor base post-IPO.

 

Sources: Canara Robeco Asset Management Company, SEBI, Financial Express, Moneycontrol, CRISIL, Canara Bank official disclosures