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Canara Robeco AMC IPO Achieves 48 Percent Subscription on Second Day of Offering
The Canara Robeco Asset Management Company's IPO has been subscribed 48 percent on its second day, with strong interest from retail and institutional investors. The offering concludes on October 13, with a price band set between Rs 253-266 per share.
The initial public offering (IPO) of Canara Robeco Asset Management Company saw a 48% subscription by the second day of its share sale on Friday. According to NSE data, bids were received for 1,68,61,824 shares out of the 3,48,98,051 shares available. The IPO is set to close on October 13.
Retail Individual Investors showed significant interest, with their quota being subscribed at 74%. Meanwhile, Non-Institutional Investors subscribed to 53% of their allocated portion. The segment for Qualified Institutional Buyers saw only a slight subscription.
IPO Details and Stakeholders
The IPO is entirely an offer for sale (OFS) involving 4.98 crore equity shares. Canara Bank and ORIX Corporation Europe N.V., previously known as Robeco Groep N.V., are the promoters selling their stakes. Canara Bank will offload 2.59 crore shares, while ORIX Corporation will sell 2.39 crore shares.
Canara Bank holds a 51% stake in Canara Robeco, with ORIX Corporation owning the remainder. As this IPO is purely an OFS, no new funds will be raised for the company itself; proceeds will go to the selling shareholders.
Market Position and Valuation
The price band for the IPO is set between Rs 253 and Rs 266 per share. At the upper end, this values the company at approximately Rs 5,300 crore. On Wednesday, Canara Robeco announced it had raised Rs 398 crore from anchor investors.
Established in 1993 by Canara Bank and later partnered with Robeco in 2007, Canara Robeco is India's second-oldest asset manager. The company focuses on managing mutual funds and offering investment advice on Indian equities.
Industry Competition
Canara Robeco operates in a competitive market alongside listed entities like HDFC Asset Management Company, Nippon Life India Asset Management, and UTI Asset Management Company. These firms represent significant competition in the asset management sector.
The IPO's conclusion will mark another chapter in Canara Robeco's history as it continues to navigate a competitive landscape while maintaining its position as one of India's longstanding asset managers.
With inputs from PTI
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