Subscribe for Canara Robeco Asset Management Co Ltd IPO; Anand Rathi

Anand Rathi, Canara Robeco Asset Management Co Ltd

Canara Robeco Asset Management Co. is India’s second oldest asset management company (“AMC”). Company’s primary activities include managing mutual funds and providing investment advice on Indian equities to Robeco Hong Kong Limited (“Robeco HK”), a member of their Promoter Group. As of June 30, 2025, they managed 26 schemes comprising 12 equity schemes, 10 debt schemes and four (4) hybrid schemes with a quarterly average asset under management (“QAAUM”) of ₹1,110.52 billion as of June 30, 2025. Company were incorporated in 1993 as Canbank Investment Management Services Limited to manage the assets of Canbank Mutual Fund, with the entire equity share capital held by Canara Bank. Subsequently, in 2007, company became Canara Robeco Asset Management Company Limited, a joint venture, when Canara Bank entered into an agreement with ORIX Corporation Europe N.V. (previously known as Robeco Groep N.V. (“Robeco”)) (“OCE”), whereby Robeco acquired a 49% stake in the Company while the remaining 51% was retained by Canara Bank. They have witnessed robust growth in their QAAUM, growing at a CAGR of 28.60% between March 31, 2023, to March 31, 2025. Company’s market share as a percentage of QAAUM remained steady, increasing from 1.54% as at March 31, 2023, to 1.61% as at March 31, 2024, and was 1.53% as at March 31, 2025, 1.61% as at June 30, 2024, and 1.54% as at June 30, 2025.

Valuation and Outlook

At the upper price band company is valuing at P/E of 27.8x to its FY25 earnings and market cap of ₹ 53,045 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “SubscribeLong Term” rating to the IPO.