Canara Robeco AMC Announces ₹1,326 Crore IPO with Price Band of ₹253-266
Canara Robeco Asset Management Company is launching its IPO to raise ₹1,326 crore. The price band is set at ₹253-₹266 per share, with the subscription period from October 9-13. The IPO is structured as an Offer For Sale, with Canara Bank and Orix Corporation Europe selling 2.59 crore and 2.39 crore shares respectively. The company reported an AUM of ₹1.17 lakh crore, revenue of ₹121.30 crore, and net profit of ₹61.00 crore for the quarter ended June 2023. The minimum lot size is 56 shares, requiring an investment of ₹14,896 at the upper price band. The expected market cap is ₹5,304 crore at the upper price band, with share allotment on October 14 and listing on October 16.
*this image is generated using AI for illustrative purposes only.
Canara Robeco Asset Management Company (AMC) is set to launch its Initial Public Offering (IPO), marking a significant event in the Indian capital markets. The company has announced the price band and key details of its upcoming IPO, which aims to raise ₹1,326 crore.
IPO Details
| Particulars | Details |
|---|---|
| Price Band | ₹253 - ₹266 per share |
| Issue Size | ₹1,326 crore |
| Subscription Period | October 9 - October 13 |
| Offer Type | Offer For Sale (OFS) |
| Total Shares Offered | 4.98 crore |
| Minimum Lot Size | 56 shares |
| Minimum Investment (Upper Band) | ₹14,896 |
| Expected Market Cap | ₹5,304 crore (at upper price band) |
| Share Allotment Date | October 14 |
| Listing Date | October 16 |
Offer Structure
The IPO is structured entirely as an Offer For Sale (OFS), where existing shareholders will be selling their stakes:
- Canara Bank: Selling 2.59 crore shares
- Orix Corporation Europe: Selling 2.39 crore shares
This structure indicates that the proceeds from the IPO will go to these selling shareholders rather than to the company itself.
Company Performance
Canara Robeco AMC has reported strong financial metrics for the quarter ended June 2023:
| Metric | Value |
|---|---|
| Assets Under Management (AUM) | ₹1.17 lakh crore |
| Revenue | ₹121.30 crore |
| Net Profit | ₹61.00 crore |
These figures demonstrate the company's significant presence in the asset management industry and its ability to generate substantial revenue and profitability.
Investor Considerations
Retail investors interested in participating in this IPO should note the minimum lot size of 56 shares, requiring an investment of ₹14,896 at the upper price band. The IPO presents an opportunity for investors to gain exposure to India's growing asset management sector.
As with any investment decision, potential investors should carefully review the company's prospectus, consider their financial goals, and assess the risks associated with equity investments before participating in the IPO.
The listing of Canara Robeco AMC on the stock exchanges will be closely watched by market participants, as it will provide insights into investor appetite for asset management companies in the current market environment.
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