Canara Robeco Asset Management Company (AMC) is poised for its stock market debut, with early indicators suggesting a positive start for investors. The grey market is hinting at a modest but encouraging premium for the newly listed shares.

IPO Performance and Pricing

The Initial Public Offering (IPO) of Canara Robeco AMC, which concluded its subscription period from October 9-13, saw robust demand with nearly 10 times oversubscription. The company had set the price band for its shares at ₹253-266 each.

Expected Listing Gains

According to grey market trends, Canara Robeco AMC shares are anticipated to list with a premium of approximately ₹22 per share. This suggests potential listing gains of around 8% for IPO investors.

IPO Details

Key Points

• The IPO was structured entirely as an Offer for Sale, meaning the proceeds will go to the selling promoters rather than the company.
• Canara Bank holds a 51% stake in the AMC, while Orix Corporation owns the remaining stake.
• The company raised over ₹750.00 crore from anchor investors, including major mutual funds and institutional investors, prior to the public offering.

This listing marks a significant milestone for Canara Robeco AMC, reflecting investor interest in the asset management sector. The modest premium suggests a balanced market response, potentially offering a stable foundation for the stock's performance in the secondary market.

Investors who participated in the IPO may see potential gains upon listing, while others might watch closely to gauge the stock's performance in its initial trading sessions.

The initial public offering (IPO) of Canara Robeco Asset Management Company (AMC) has concluded with a robust response from investors, as the allotment process finalizes today. The Rs 1,326 crore offer for sale garnered significant interest across various investor categories, setting the stage for its stock market debut on October 16.

Subscription Details

The IPO witnessed strong demand, with an overall subscription of 9.74 times. Here's a breakdown of the subscription rates across different investor categories:

Key IPO Highlights

• Issue Size: Rs 1,326 crore
• Anchor Investment: Rs 397.8 crore raised from anchor investors
• Issue Price: Rs 266 per share
• Listing Date: October 16, 2023
• Grey Market Premium: Rs 13-14, indicating potential listing gains of about 5%

About Canara Robeco AMC

Canara Robeco Asset Management Company stands as India's second-oldest mutual fund house, with a joint promotion by Canara Bank and ORIX Corporation Europe NV. The company has established a significant presence in the Indian mutual fund industry:

• Schemes Managed: 26 mutual fund schemes
• Geographical Presence: Operations across 23 cities

Financial Performance

The company has demonstrated strong financial growth:

Market Expectations

The grey market premium of Rs 13-14 suggests positive sentiment among investors, potentially indicating listing gains of approximately 5% over the issue price of Rs 266 per share.

As Canara Robeco AMC prepares for its stock market debut, investors and market watchers will be keenly observing its performance, given the company's established presence in the mutual fund industry and its recent financial growth trajectory.