Canara Robeco Asset Management Company, the second oldest AMC in India, has filed preliminary papers with the SEBI to raise funds via initial public offering.
As per the draft papers, the 4.98 crore equity shares IPO comprises of solely offer-for-sale (OFS) by promoters Canara Bank and ORIX Corporation Europe NV, with no fresh issue component.
Canara Bank plans to sell 2.59 crore equity shares via OFS and the Japanese conglomerate ORIX Corporation-owned subsidiary ORIX Corporation NV (previously known as Robeco Groep NV) will be selling the remainder 2.39 crore shares.
Hence, the entire IPO proceeds will go to these selling shareholders and the company will not receive any money from the public issue.
"Company expects that listing of the equity shares will enhance visibility and brand and provide liquidity to its existing Shareholders. Listing will also provide a public market for the equity shares in India," Canara Robeco said.
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Incorporated in 1993, Canara Robeco Asset Management Company is a joint venture company between Canara Bank and ORIX Corporation Europe NV with 51:49 percent shareholding ratio. As of December 2024, it managed 25 schemes comprising 12 equity schemes, 10 debt schemes and 3 hybrid schemes with a quarterly average asset under management (QAAUM) of Rs 1,08,366 crore.
The asset management company that competes with the listed entities like HDFC AMC, Nippon Life India AMC, Aditya Birla Sun Life AMC and UTI AMC recorded healthy financial performance in the past years. Profit for nine months period ended December 2024 stood at Rs 149 crore, growing 40.3 percent and revenue at RS 302.9 crore, increasing 35.9 percent over the same period of last financial year.
Profit in the financial year ended March 2024 at Rs 151 crore grew by 91.1 percent and revenue at Rs 318 crore surged by 55.5 percent compared to previous financial year.
SBI Capital Markets, Axis Capital, and JM Financial are appointed as the book running lead managers to the issue, while AZB & Partners is the legal counsel to the company. JSA Advocates and Solicitors is the counsel to the investment banks.
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