Canara Robeco AMC IPO: Subscription at 23% on Day 2, GMP Declines
The Canara Robeco Asset Management Company's IPO entered its second day with a 23% overall subscription rate. The Rs 1,326 crore offer-for-sale saw varied interest across investor categories, with retail investors leading at 36% subscription. Institutional buyers have not yet participated. The IPO's price band is set at Rs 253 - Rs 266 per share, valuing the company at Rs 5,300 crore. The Grey Market Premium has declined to 7.52% from 13%. Canara Robeco AMC manages assets worth Rs 1.03 lakh crore, focusing primarily on active equity schemes. Analysts view the IPO positively for long-term investors, citing the company's strong retail base and steady growth trajectory.
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The Initial Public Offering (IPO) of Canara Robeco Asset Management Company entered its second day with a subscription rate of 23%. The Rs 1,326 crore offer-for-sale has seen varied interest across investor categories, with retail investors leading the charge.
Subscription Details
| Investor Category | Subscription Rate |
|---|---|
| Retail Investors | 36% |
| Institutional Buyers | Not yet participated |
| Overall | 23% |
IPO Highlights
- Offer Size: Rs 1,326 crore
- Price Band: Rs 253 - Rs 266 per share
- Company Valuation: Rs 5,300 crore
- Grey Market Premium (GMP): 7.52% (declined from 13%)
Company Overview
Canara Robeco Asset Management Company manages assets worth Rs 1.03 lakh crore, holding a 1.5% market share in the industry. The company's focus lies primarily on active equity schemes, which constitute 92% of its total Assets Under Management (AUM).
Financial Performance
| Metric | FY23 | FY25 (Projected) | Growth |
|---|---|---|---|
| Net Profit | Rs 790.00 crore | Rs 1,907.00 crore | 141.39% |
| Revenue | Rs 2,046.00 crore | Rs 4,037.00 crore | 97.31% |
Analyst Perspectives
Analysts view the Canara Robeco AMC IPO positively for long-term investors, citing the company's:
- Strong retail base
- Steady growth trajectory
However, they note that near-term gains might be modest due to sector headwinds.
Investor Considerations
While the IPO presents an opportunity to invest in a growing asset management company, potential investors should consider:
- The competitive landscape of the asset management industry
- Current market conditions and their impact on the financial sector
- The company's growth strategy and ability to increase market share
Investors are advised to carefully review the offer document and consider their financial goals before making an investment decision.
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