The initial public offering (IPO) of Canara Robeco Asset Management Company (AMC) is expected to be launched in the fourth quarter of the current financial year, Canara Bank MD & CEO K Satyanarayana Raju has said.
“We have completed all the approvals, only appointment of merchant bankers is in process, hence we expect listing will come in fourth quarter of this fiscal,” Raju said during a post-earnings press conference on July 25.
The lender holds a 51 percent stake in the AMC, according to the bank’s investor presentation. It planned to sell 13 percent equity by taking the mutual fund subsidiary public, the lender told the exchanges in March.
Canara Bank had in last December given an in-principle approval to start the process of listing its mutual fund subsidiary by way of an initial share sale.
Raju said that the listing of Canara HSBC Life Insurance Company is expected in the first quarter of the next financial year.
“We expect the list of this arm will happen in first quarter of next fiscal year,” Raju said during press conference.
The bank holds a 51 percent stake in the insurance company.
The lender has on May 31 approved a proposal to dilute 14.5 percent stake in the insurance arm via IPO.
“Canara Bank has accorded approval for initiating the process of diluting 14.50 percent stake of the Bank in its subsidiary M/s Canara HSBC Life Insurance Company Ltd by listing the Company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO),” the bank told exchanges.
At the end of June quarter, the insurance arm recorded a total profit of Rs 18. 7 crore.
The state-owned lender reported a 10.5 percent on-year rise in net profit at Rs 3,905.28 crore for the June quarter. Sequentially, net profit was up 4 percent.
The stock ended the day at Rs 112 on the National Stock Exchange, down 0.41 percent from the previous day.
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