Canara Robeco AMC IPO Sees Lukewarm Response on Final Day

Canara Robeco Asset Management Company's Initial Public Offering (IPO) received a tepid response as it entered its third and final day of subscription. As of 10:54 a.m. on Monday, October 13, the IPO was subscribed 0.44 times, indicating a less than enthusiastic reception from investors.

IPO Details

Particulars	Details
Price Band	₹253 - ₹256 per share
Minimum Lot Size	56 shares
Offer Type	Pure Offer for Sale
Total Shares Offered	4.98 crore shares
Canara Bank's Offer	2.59 crore shares (13% stake)
Orix Corporation Europe's Offer	2.39 crore shares (12% stake)

Subscription Status

Investor Category	Subscription Rate
Retail Investors	0.74 times
Non-Institutional Investors	0.53 times
Qualified Institutional Buyers	0.00 times
Overall	0.44 times

Key Dates

Event	Date
Share Allotment	October 14
Listing on BSE and NSE	October 16

The company had earlier raised nearly ₹400 crore from anchor investors, demonstrating some institutional interest prior to the public offering.

Grey Market Premium

The grey market premium for Canara Robeco AMC shares stands at ₹8, suggesting an estimated listing price of ₹264. This indicates a potential upside of approximately 3.13% from the upper end of the price band.

Market Sentiment

The lukewarm response to the IPO, particularly the lack of participation from qualified institutional buyers, may raise concerns about investor sentiment towards the asset management sector or the broader market conditions. The retail and non-institutional segments showed relatively better interest, but still remained undersubscribed.

As the IPO enters its final hours, it remains to be seen whether there will be a last-minute surge in subscriptions. Investors and market watchers will be keenly observing the final subscription figures and the subsequent listing performance to gauge the appetite for new offerings in the current market environment.

Canara Robeco Asset Management Co. has launched its Initial Public Offering (IPO), marking a significant event in the Indian capital markets. The IPO, which is structured as a pure offer for sale, has opened for subscription with a price band that has caught the attention of investors and market watchers alike.

IPO Pricing and Subscription Details

The Canara Robeco AMC IPO comes with the following key details:

Particular	Details
Price Band	Rs 253 - Rs 266 per share
Minimum Investment	Rs 14,336 for 56 shares
IPO Period	Open until October 13
Allotment Date	October 14
Listing Date	October 16
Listing Venues	BSE and NSE

Offer Structure and Promoter Stake

This IPO is structured as a pure offer for sale, where the existing promoters will offload a total of 4.98 crore shares:

Promoter	Shares Offered	Stake Reduction
Canara Bank	2.59 crore	13%
Orix Corporation Europe	2.39 crore	12%

Anchor Investment and Grey Market Premium

The IPO has already garnered significant interest:

Raised Rs 400 crore from anchor investors
Grey market trading indicates a premium of Rs 35
Potential listing price estimated at Rs 301, based on grey market trends

Company Background

Canara Robeco Asset Management Co. is a joint venture between:

Canara Bank (51% stake)
Orix Corporation Europe (49% stake)

IPO Management

The lead managers for this IPO are:

SBI Capital Markets
Axis Capital
JM Financial

This IPO presents an opportunity for investors to participate in the asset management sector, with Canara Robeco AMC's established presence in the market. The grey market premium suggests positive sentiment, but investors should conduct their own research and consider their risk appetite before making investment decisions.

As the IPO unfolds, market participants will be keenly watching the subscription levels and the eventual listing performance of Canara Robeco AMC shares on the stock exchanges.