Canara Robeco Asset Management Company, the subsidiary of PSU lender Canara Bank, has received approval from the capital markets regulator SEBI to launch its initial public offering (IPO).
The India’s second oldest asset management company has received final observations on its draft papers from the SEBI on September 10, paving the way for launching IPO within the next one year.
"Canara Robeco Asset Management Company has received communication from Securities and Exchange Board of India (SEBI) vide letter dated September 10, received on September 11, on final observations and for filing Red Hearing Prospectus (RHP)," Canara Bank in its filing to exchanges said.
This allows the asset management company to file its RHP with the Registrar of Companies for raising funds via IPO.
Canara Robeco Asset Management Company has filed preliminary papers with the SEBI on April 24 this year to raise funds via IPO which consists of entirely an offer-for-sale (OFS) of 4.98 crore shares by promoters.
This means the entire offer proceeds will go to the selling shareholders and the AMC will not receive any funds from its IPO. The main purpose of this IPO is to carry out this OFS and list on the exchanges.
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Canara Bank, and foreign promoter ORIX Corporation Europe NV, which proposed to sell 2.59 crore shares and 2.39 crore shares via OFS, hold 51 percent and 49 percent stakes respectively in the AMC.
The AMC was incorporated in 1993 as Canbank Investment Management Services to manage the assets of Canbank Mutual Fund which was entirely owned by Canara Bank. In 2007, the bank sold its 49 percent equity stake in the said company to ORIX Corporation Europe NV and as a result, Canbank Investment Management Services renamed as Canara Robeco Asset Management Company since then.
The merchant bankers to manage the Canara Robeco AMC IPO are SBI Capital Markets, Axis Capital, and JM Financial.
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