Canara Robeco AMC's ₹1,326 Crore IPO: Anchor Book Oversubscribed, Retail Offering Opens
Canara Robeco Asset Management Company has raised ₹397 crore from anchor investors, allocating 1.49 crore equity shares at ₹266 per share. The company's ₹1,326 crore IPO, structured as a complete Offer For Sale, is now open for public subscription with a price band of ₹253-₹266 per share. The IPO will run from October 11 to October 13, with listing expected on October 16. Key anchor investors include Nippon Life India Trustee Ltd., Aditya Birla Sun Life Banking & Financial Services Fund, and Axis Small Cap Fund.
*this image is generated using AI for illustrative purposes only.
Canara Robeco Asset Management Company (AMC) Ltd. has kicked off its initial public offering (IPO) process with a strong start, successfully raising ₹397 crore from anchor investors. The company is now set to open its ₹1,326 crore IPO for public subscription, marking a significant event in the Indian capital markets.
Anchor Book Highlights
Canara Robeco AMC allocated 1.49 crore equity shares to over 15 anchor investors at ₹266 per share, which is at the upper end of the price band. The anchor book saw participation from several prominent investors:
| Investor | Shares Allocated | Amount (₹ Crore) |
|---|---|---|
| Nippon Life India Trustee Ltd. | 13,16,000 | 39.00 |
| Aditya Birla Sun Life Banking & Financial Services Fund | Not specified | Not specified |
| Axis Small Cap Fund | Not specified | Not specified |
| DSP Banking Fund | Not specified | Not specified |
| SBI PSU Fund | Not specified | Not specified |
IPO Details
The public offering is structured as a complete Offer For Sale (OFS), where existing shareholders Canara Bank and OCE will sell their stakes. Key details of the IPO include:
| Particular | Detail |
|---|---|
| Issue Size | ₹1,326 crore |
| Price Band | ₹253 - ₹266 per share |
| Minimum Bid | 56 shares |
| Minimum Investment (Retail) | ₹14,896 |
| Subscription Period | October 11 - October 13, 2023 |
| Allotment Date | October 14, 2023 |
| Listing Date | October 16, 2023 |
| Expected Market Cap | ₹5,305 crore (post-issue) |
Investor Considerations
Complete OFS: As the IPO is entirely an offer for sale, the company will not receive any proceeds from the issue. The funds raised will go to the selling shareholders.
Market Position: Canara Robeco AMC is entering the public market at a time when the asset management industry in India is seeing significant growth and increased retail participation.
Valuation: With an expected post-issue market capitalization of ₹5,305 crore, investors will need to assess the company's valuation in comparison to its peers and growth prospects.
Retail Allocation: Retail investors have the opportunity to participate in this offering, with a minimum investment requirement of ₹14,896 for 56 shares.
The strong response from anchor investors could be seen as a positive signal for the IPO. However, potential investors should conduct their own research and consider their financial goals before making an investment decision. As the IPO unfolds over the next few days, it will be interesting to see how retail and institutional investors respond to this offering in the asset management space.
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