Canara Robeco Asset Management Company IPO

About Canara Robeco AMC IPO

The IPO of Canara Robeco AMC comprises only an offer for sale of up to 49,854,357 equity shares of face value of ₹10 each. It has no fresh issue and is a 100% book-built offer. The IPO opens on TBA and closes on TBA. The credit of shares will take place on TBA and the initiation of refunds will take place on TBA. The basis of allotment will take place on TBA.

Objectives of Canara Robeco AMC IPO

Canara Robeco AMC Ltd expects that listing of the equity shares will enhance its visibility and brand and provide liquidity to its existing shareholders. Listing will also provide a public market for the equity shares in India. The company will not receive any proceeds from the offer.

Industry Outlook

The Indian mutual fund industry has experienced significant growth over the past six years, driven by a thriving domestic economy, substantial inflows, and increased participation from individual investors. The industry is witnessing a surge in growth, driven largely by the equity space, where assets have increased significantly over the past decade. The industry is well positioned for future success given the flexibility and resilience demonstrated over the past year, even in the face of headwinds from the global economy. In the long term, i.e., between Fiscal 2024 and Fiscal 2029, the industry’s AUM is projected to sustain a high growth trajectory of 16-18% CAGR, reaching approximately ₹ 115-120 lakh crore.

Company Information

Canara Robeco AMC Ltd primary activities include managing mutual funds and providing investment advice on Indian equities to Robeco Hong Kong Limited (Robeco HK), a member of its promoter group. As of December 31, 2024, the company managed 25 schemes comprising 12 equity schemes, 10 debt schemes and 3 hybrid schemes with a quarterly average asset under management (QAAUM) of ₹ 1083.66 billion as of December 31, 2024.

Risks of Canara Robeco AMC

• Underperformance of Investment Schemes

One of its equity schemes and eight of its debt schemes have underperformed relative to their respective benchmark indices over a one-year period ending Fiscal 2024. If its investment schemes underperform, its AUM could decrease, negatively impacting its results of operations.

• Market Changes and Economic Downturns

Unfavourable market changes and economic downturns may result in customer withdrawals or a decrease in customer transactions, resulting in a decline in its assets under management and management fees, which could significantly and negatively influence its revenue from operations, business prospects, financial conditions, and results of operations.

• Lack of Suitable Investment Opportunities

The company’s assets under management could be adversely affected by a lack of suitable investment opportunities or its decision to discontinue certain schemes, which could have an adverse impact on its business, revenue from operations and profitability.

IPO Registrar and Book Running Lead Managers

-IPO Registrar: MUFG Intime India Pvt Ltd

• Book Running Lead Managers : SBI Capital Markets Ltd, Axis Capital Ltd and JM Financial Ltd

Business Model

Managing mutual funds and providing investment advice on Indian equities to Robeco Hong Kong Ltd as of December 31, 2024, Canara Robeco managed 12 equity schemes, 10 debt schemes and 3 hybrid schemes.

It caters to a diverse group of customers through a wide variety of investment solutions and offers a range of mutual funds to help investors achieve their financial needs and goals. The company categorises its schemes broadly under the following three categories:

• Equity schemes
• Debt schemes
• Hybrid schemes

Company Growth Trajectory

The revenue from operations of Canara Robeco AMC Ltd grew from ₹164.217 crores in FY 22 to ₹318.090 crores in FY 24. Its PAT margin grew from 36.64% in FY 22 to 47.47% in FY 24. The company has also witnessed a robust growth in its QAAUM, which grew at a CAGR of 34.75% between March 31, 2022, to March 31, 2024, compared to industry growth of 18.8%.

A recognised brand coupled with operations led by a professional management team and established corporate governance standards have helped the company grow over the years.

Market Position

Canara Robeco AMC Ltd is India’s second oldest asset management company. It has a pan India geographical presence serving customers directly in more than 23 cities across 14 states and 2 union territories with a network of 23 branches as of December 31, 2024.

Its branch presence across India is also supported by its third-party distribution partners. As of December 31, 2024, it had 49,412 empanelled distribution partners across India, including Canara Bank, 44 other banks, 259 national distributors (ND) and 49,108 mutual fund distributors.

How to Check the Allotment Status of Canara Robeco Asset Management IPO?

Visit the Registrar’s Website

• Visit the official website of MUFG Intime India Pvt Ltd
• Click on ‘Public Issues’ under ‘Investor Services’
• Select company name and enter either your PAN, application number, DP/Client ID or account number/IFSC
• Click on ‘Submit’ to know the status

Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

Check on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Canara Robeco AMC Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN Then click 'Submit' to know the allotment status.

How to Apply for Canara Robeco AMC IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.