Canara Robeco AMC IPO: Second oldest MF set for market debut – All you need to know about this high-growth, retail-focused asset manager

The IPO pipeline continues to swell in the second half of the year, and among the names preparing to hit the market is Canara Robeco Asset Management Company. The AMC, which has filed its draft papers with SEBI, is expected to launch its IPO sometime this year, though the company has not officially announced a date yet.

What sets this issue apart in a crowded lineup is the fact that Canara Robeco is the second oldest asset management company in India, marking a rare public entry by a player in the mutual fund space.

With several upcoming IPOs already crowding investors’ radar, this one is likely to draw interest not just for its scale, but also for its long-standing presence in the industry.

Canara Robeco AMC IPO: Files draft paper for IPO with SEBI

In April 2025, Canara Robeco Asset Management Company took its first step towards a stock market listing by filing draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering. The IPO will be a complete offer-for-sale, with no fresh issue of shares. Both existing shareholders, that is, Canara Bank and Japan’s Orix Corporation plan to reduce their stakes. Canara Bank will sell 13%, or around 25.92 million shares, while Orix will offload 12%, roughly 23.93 million shares, as per the DRHP filing.

At present, Canara Bank holds 51% in the AMC and Orix holds the remaining 49%. Canara Robeco is the investment manager for Canara Robeco Mutual Fund, which had an average AUM of Rs 1 trillion in the fourth quarter of FY25.

Here’s what we know so far about Canara Robeco Asset Management Company

Canara Robeco Asset Management Company IPO: Objective of the issue

As mentioned, the IPO is primarily an Offer for Sale (OFS), where up to 49.85 million equity shares of Rs 10 each will be sold by the promoter selling shareholders. This means the company is not issuing any new shares and will not receive any funds from the proceeds.

The other key goal of the IPO is to list the company’s shares on the stock exchanges.

Canara Robeco AMC IPO: Business dynamics

Canara Robeco Asset Management Company is one of the quiet veterans of India’s mutual‑fund industry. It was born in 1993 as Canbank Investment Management Services, and re-emerged in 2007 as a 51:49 joint venture between public‑sector giant Canara Bank and ORIX Corporation Europe. This gives the company a blend of domestic reach and global investing. Here is how – Canara Bank supplies a 118‑year‑old brand name and nearly 10,000 bank branches for distribution, while ORIX adds the research depth and risk discipline of a multinational financial group.

Behind the brand is a business that outpace to a broader industry. As per the DRHP filing, by December 2024, Canara Robeco managed 25 mutual‑fund schemes whose quarterly average assets had swollen to Rs 1.08 trillion, clocking a 34.7% CAGR in just two year. A 93% of those assets sit in equity oriented funds, and seven of its oldest equity schemes have all beaten their benchmarks over a 10 year horizon.

Furthermore, retail money is the backbone of the company. Nearly 89% of monthly average AUM comes from individual investors, spread across almost five million folios.

The mutual funds are only part of the story. Canara Robeco also advises offshore portfolios for its sister company in Hong Kong. At home, it leans on a pan‑India, multi‑channel network of more than 49,000 distributors, a 23 branch footprint, and a growing push into “B‑30” cities where mutual‑fund penetration remains thin.

Canara Robeco Asset Management Company IPO: Key services provided

Canara Robeco Asset Management Company operates with a focus on two key business segments – mutual fund management and offshore investment advisory.

In its mutual fund operations, the company manages schemes launched under the Canara Robeco Mutual Fund brand. As of December 31, 2024, it was managing 25 schemes, including 12 equity focused, 10 debt-oriented, and 3 hybrid schemes. The firm’s role is to deploy the funds collected through these schemes into various financial instruments, in line with the investment objectives defined for each product. The company earns management fees based on the size of assets under management (AUM), calculated as a percentage and governed by regulatory guidelines issued by SEBI.

Apart from fund management, Canara Robeco AMC also offers investment advisory services. These are specifically provided to Robeco Hong Kong, which is part of the company’s promoter group. The advisory services include economic analysis, portfolio recommendations, monitoring existing investments, and preparing periodic reports. Fees for these services are collected as per agreed contractual terms and are recorded on an accrual basis, said the company in the DRHP filing.

Canara Robeco Asset Management Company IPO: Financial performance

Looking at the financial performance of the company over the past few years, it has reported a sharp rise in its Assets Under Management (AUM). As per the DRHP filing, as of December 2024, the company’s quarterly average AUM stood at Rs 1,083.66 billion, registering a compound annual growth rate (CAGR) of 34.75% between March 2022 and March 2024. This is far ahead of the industry average of 18.8%. A key highlight is its dominance in equity oriented schemes, which contributed over 93% to its AUM as of December 2024.

Furthermore, nearly 89% of its monthly average AUM came from retail investors and HNIs, with nearly 5 million investor folios.

In terms of earnings, Canara Robeco’s profits have been on an upward movement. Its net profit surged to Rs 1,489.76 million during the nine months ending December 2024, compared to Rs 1,062.16 million in the same period the year before. The company also reported a Profit After Tax (PAT) margin of 49.18% for the period. For the full fiscal year 2024, it posted a PAT of Rs 1,509.95 million.

The Return on Net Worth (RoNW) stood at 33.22% for FY24, while basic earnings per share for the year were Rs 7.57. With a cost-to-income ratio of 38.77% and a NAV per equity share of Rs 91.16 as of March 2024.

Canara Robeco Asset Management Company IPO: Main promoters

Canara Robeco Asset Management Company is jointly promoted by Canara Bank and ORIX Corporation Europe N.V. (OCE), who currently own 100% of the company’s equity. As of now, before the IPO opens, Canara Bank’s stake is at 51%, while OCE owns the remaining 49%, as per the DRHP filing. This includes a small portion of shares held jointly with nominees of Canara Bank.

The upcoming IPO is entirely an Offer for Sale (OFS), with both promoters offloading part of their stakes. Canara Bank plans to sell around 2.59 crore shares, and OCE will offer about 2.39 crore shares. After the offer, both will still remain key shareholders. As per SEBI regulations, Canara Bank must retain at least 30%, and OCE at least 10% of the equity capital in the asset management company. The company itself will not receive any proceeds from the sale.

Canara Robeco Asset Management Company IPO: Market position

Canara Robeco Asset Management Company, established in 1993, is among the oldest AMCs in India. Over the years, its presence in the mutual fund industry has grown. As per the DRHP filing, its share in quarterly average assets under management (QAAUM) rose from 1.2% in March 2022 to 1.5% by March 2024. By the end of December 2024, it had one of the highest shares of equity and retail AUM among the top mutual fund houses in the country.

According to a CRISIL report, the company ranked third in retail AUM among the top 20 AMCs and had the highest retail share among the top 10. It also maintained a key position in terms of equity-oriented schemes. In terms of return on equity, Canara Robeco ranked fifth among the top 20 AMCs and second among the top 10, based on data as of March 2024.

Canara Robeco Asset Management Company IPO: Risk involved

As per the DRHP filed by the company, some of key risks mentioned by the company include –

• “One of our equity schemes and eight of our debt schemes have underperformed relative to their respective benchmark indices over a one-year period ended Fiscal 2024. If our investment schemes underperform, our AUM could decrease, negatively impacting our results of operations.”
• “Unfavourable market changes and economic downturns may result in customer withdrawals or a decrease in customer transactions, resulting in a decline in our assets under management and management fees, which could significantly and negatively influence our revenue from operations, business prospects, financial conditions, and results of operations.”
• “We have licensed the trademarks”Canara ” and “Robeco ” from Canara Bank and Robeco Holding, respectively and the termination of the trademark license agreements could adversely impact our business and results of operations.”