13 investment banks bid for Canara Robeco Mutual Fund IPO mandate

The asset management company manages various mutual fund schemes across equity, debt and hybrid categories.

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26 Aug, 2025 12:21

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State-owned Canara Bank and Japan’s Orix-promoted Canara Robeco Asset Management Company has received bids from 13 investment banks to manage a proposed initial public offering (IPO) of the mutual fund company, people aware of the matter told Moneycontrol.

“Financial bids were opened earlier this week. Thirteen banks have put bids for the Canara Robeco IPO mandate including top domestic banks such as ICICI Securities, Axis Capital, JM Financial, SBI Capital, DAM Capital and foreign banks such as HSBC and BNP Paribas,” one of the persons cited above said.

Other investment banks in the running include IIFL, Ambit Capital, IDBI Capital, BOBCaps, Motilal Oswal and Nuvama, the source added.

The proposed IPO is expected to be around Rs 2,500 crore in size, sources said. Canara Robeco is expected to pick around four to five investment banks to manage the offering, another source said told Moneycontrol.

“Banker appointments are expected to happen by the end of the month. The IPO process has been delayed due to a delay in approvals from the government and the Reserve Bank of India, which have been received recently, and now the bank is looking to speed up the work on the IPO,” the source said.

Emails sent to Canara Bank and Canara Robeco did not elicit a response till press time.

Canara Bank board on March 29 approved plans to sell a 13 percent stake in the mutual fund business. In May, it also approved plans to sell a 14.5 percent stake in its insurance joint venture, Canara HSBC Life Insurance Company.

The state-owned lender on December 5 received approvals from the RBI to divest stake in the two subsidiaries.

Canara Robeco MF  

Canara Robeco Mutual Fund, the second oldest mutual fund in India, was set up in 1993 as Canbank Mutual Fund. In 2007, Canara Bank partnered with Robeco (now a part of ORIX Corporation) and the mutual fund was renamed as Canara Robeco Mutual Fund.

Canara Robeco’s was managing Rs 1.06 lakh crore worth of assets as of November 30, growing 28 percent from the end of 2023.

The asset management company manages various mutual fund schemes across equity, debt and hybrid categories.

In FY24, Canara Robeco recorded a revenue of Rs 318.78 crore, up from Rs 204.79 crore in the previous year. The mutual fund manager’s profit also grew to Rs 150.86 crore from Rs 78.79 crore.

Mutual Fund IPOs

The last mutual fund company to hit the primary market was UTI Asset Management Company, which raised Rs 2,160 crore in October 2020.

HDFC Asset Management Company raised Rs 2,800 crore in 2018, a year after Nippon Life Asset Management Company raised Rs 1,542 crore through its offer.