Canara Robeco Asset Management Company
- Canara Robeco AMC is coming out with a 100% book building; initial public offering (IPO) of 4,98,54,357 shares of 10 each in a price band Rs 253-266 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on October 9, 2025 and will close on October 13, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 25.30 times of its face value on the lower side and 26.60 times on the higher side.
- Book running lead managers to the issue are SBI Capital Markets, Axis Capital and JM Financial.
- Compliance Officer for the issue is Ashutosh Pramod Vaidya.
Profile of the company
Canara Robeco Asset Management Company (Canara Robeco AMC) is India’s second oldest asset management company (AMC). Its primary activities include managing mutual funds and providing investment advice on Indian equities to Robeco Hong Kong Limited (Robeco HK), a member of its Promoter Group. As of June 30, 2025, it managed 26 schemes comprising 12 equity schemes, 10 debt schemes and four hybrid schemes with a quarterly average asset under management (QAAUM) of Rs 1,110.52 billion as of June 30, 2025.
The company was incorporated in 1993 as Canbank Investment Management Services Limited to manage the assets of Canbank Mutual Fund, with the entire equity share capital held by Canara Bank. Subsequently, in 2007, it became Canara Robeco Asset Management Company Limited, a joint venture, when Canara Bank entered into an agreement with ORIX Corporation Europe N.V. (previously known as Robeco Groep N.V. (Robeco)) (OCE), whereby Robeco acquired a 49% stake in the company while the remaining 51% was retained by Canara Bank.
It has a wide retail customer base and as of June 30, 2025, the total Monthly Average Assets Under Management (MAAUM) generated from retail investors (inclusive of retail and high-net worth individual investors) were Rs 1,011.70 billion, accounting for 86.87% of its total MAAUM. Furthermore, as of June 30, 2025, the total folios invested in its schemes were 5.05 million out of which 5.00 million were individual customer folios, representing 99.01% of its total folios. As of June 30, 2025, it had the second highest share of retail AUM amongst the top 20 AMCs in India and the highest share of retail AUM compared to top 10 AMCs (basis AUM).
Proceed is being used for:
- Achieving the benefits of listing the Equity Shares on the Stock Exchanges and for the Offer for Sale of Equity Shares of face value of Rs 10 each by its Promoter Selling Shareholders
Industry Overview
The Indian capital market is one of the most dynamic and high growth organised markets in the world. It witnessed strong performance during the period Fiscal 2019-25. The market capitalization of National Stock Exchange (NSE) grew at 15.6%% CAGR during Fiscal 2019 to Fiscal 2025. The Nifty 50 index has grown at a CAGR of 10.6% over this period. BSE Sensex has followed a similar growth trajectory to Nifty 50. Indian equities continued to see strong gains in calendar year 2025. Both domestic and global factors were supportive of foreign capital inflows. India’s stock market capitalisation to GDP has increased from 95.4% in 2020 to 125.3% in 2025. Japan’s stock market capitalisation to GDP ratio has remain the highest for all the years expect 2025 among the countries compared.
Meanwhile, the Indian mutual fund industry has experienced significant growth over the past six years, driven by a thriving domestic economy, substantial inflows, and increased participation from individual investors. The industry is witnessing a surge in growth, driven largely by the equity space, where assets have increased significantly over the past decade. This shift is attributed to retail investors transitioning from traditional debt products to equity funds, resulting in a substantial rise in equity investments. Retail mutual fund AUM as a proportion of individual deposits in scheduled commercial banks has risen from 19.7% in March 2020 to 30% as of March 2025 indicating increase investor participation in mutual funds. Quarterly average AUM (QAAUM) surged by approximately ?13 trillion, reaching a record high of Rs 67.4 trillion by March 2025, up from Rs 54.1 trillion as of March 2024. Over the six-year period, the QAAUM grew at a CAGR of 18.4%, increasing from Rs 24.5 trillion as of March 2019 to Rs 67.4 trillion as of March 2025. QAAUM as of June 2025 stood at Rs 72.14 trillion. Between fiscal 2023 to Fiscal 2025, the quarterly average AUM grew at a CAGR of 29.0%.
The monthly inflows through SIPs have demonstrated a consistent upward trend, rising from Rs 8,055 crore in March 2019 to Rs 27269 crore in June 2026. Over the longer term, the monthly average SIP inflows have grown at a compound annual growth rate (CAGR) of 23.7%, increasing from Rs 8,340 crore in fiscal 2020 to Rs 24,113 crore in Fiscal 2025. SIPs’ stability has proven essential in directing industry flows and giving investors a methodical and disciplined approach. Popularity of equity funds, rising participation of investors, recent investor education initiatives, and apparent benefits of SIPs to households that traditionally did not invest in mutual funds indicate that growth in inflows from SIPs is expected to accelerate over the foreseeable future. This is expected to make SIPs an increasingly important component in overall AUM growth. Increase in retail AUM has been primarily on account of SIPs as they make it easier for retail investors to participate by allowing them to invest small, manageable sums regularly. This method not only draws in more retail investors but also boosts the overall retail contribution to SIP AUM, building a larger, more stable asset base over time. Further, SIP AUM is expected to grow at a CAGR of 25-27% over FY25 to FY30.
Pros and strengths
Recognized brand with legacy of operations and established parentage: It is a joint venture company with a shareholding structure where Canara Bank owns 51% and OCE holds 49%. With more than three decades of operational experience, it was incorporated in 1993 and are the second-oldest asset management company in India. Canara Bank, a scheduled public sector commercial bank, was founded in the year 1906 as a private entity and became a nationalized bank in 1969. As on June 30, 2025, Canara Bank has a Pan-India presence with 9,861 branches and 7,907 ATMs, spread across all the Indian states and union territories. Canara Bank operates four international branches in New York (United States of America), London (United Kingdom), Dubai (UAE) and International Business Unit in Gujarat International Finance Tec-City.
Operations led by professional management team: The company’s business is professionally managed by a management team with extensive experience in overseeing operations and driving business growth. Their strategic guidance underpins the company’s success and resilience in a competitive market landscape. The employee value proposition offered by the company is evident in the long-standing association of its investment and the senior management teams, with the average tenure of its investment team being 5.85 years, while the senior management team boasts an average tenure of 8.67 years, as of June 30, 2025, reflecting their long-standing dedication and contribution to the company’s growth. This continuity ensures a deep understanding of its organisational culture, strategic goals, and market dynamics, allowing for informed and consistent leadership.
Well-diversified equity products mix: As of June 30, 2025, out of 15 equity-oriented schemes, it managed seven equity-oriented schemes that have been managed for more than 10 years. It has witnessed a significant increase in its equity-oriented QAAUM which grew at a CAGR of 30.96% between March 31, 2023 and March 31, 2025. It had the third highest share of equity (including equity-oriented hybrid) AUM as of June 30, 2025 amongst the top 20 AMCs in India and the highest share of equity-oriented AUM compared to top 10 AMCs.
Pan-India multi-channel sales and distribution network: It has a multi-channel sales and distribution network that allows it to offer products and services to its customers. This network includes third-party distributors, sales through its branches, and digital platforms. As of June 30, 2025, it had 52,343 distribution partners across India, including Canara Bank, 44 other banks, 548 ND and 51,750 MFDs. As of June 30, 2025, it had a Pan India geographical presence serving customers directly in more than 23 cities across 14 states and 2 union territories with a network of 25 branches as of June 30, 2025, as well as a sales team of 142 employees and a customer services team of 52 employees. It has also partnered with digital platforms which provide access to the users of such platforms to its products.
Risks and concerns
Majority of AUM generated by third-party distributors: As of June 30, 2025 and June 30, 2024 and March 31, 2025, March 31, 2024, and March 31, 2023, 73.45%, 75.82%, 73.63%, 76.24% and 78.04% of its monthly average assets under management were generated from third-party distributors. If the company is unable to maintain its existing relationship with its third-party distributors or attract new distributors, its business, competitiveness, results of operations and financial condition may be adversely impacted.
Generate majority of revenue from certain states: As of June 30, 2025 and June 30, 2024 and March 31, 2025, March 31, 2024 and March 31, 2023, 62.11%, 61.46%, 61.92%, 61.67%, and 64.74% of the company’s MAAUM were generated from customers located in the Indian states/union territory of Maharashtra, Gujarat, Karnataka, Delhi, and Tamil Nadu. A decrease in its AUM from these states/union territory could adversely impact its business and revenue from operations.
Garner portion of revenue from offshore advisory services: The company generates a portion of its revenue from operations from offshore advisory services. The company provides offshore advisory services to Robeco HK, one of the members of its Promoter Group and its Group Companies, which acts as an investment manager in the management of investment and re-investment of the assets (including) cash of the various funds it manages. In the event its agreements for providing such advisory services are terminated, its business, revenue from operations and profitability will be affected.
Business is subject to extensive regulation: The company’s business is subject to extensive regulation, including periodic inspections by the Securities and Exchange Board of India (SEBI), and its non-compliance with existing regulations or SEBI’s observations could expose it to penalties and restrictions in the business that it can undertake.
Outlook
Canara Robeco AMC is an asset management firm in India, serving as the investment manager for Canara Robeco Mutual Fund. The company works with a wide network of thousands of distribution partners across India, including Canara Bank, many other banks, several national distributors (NDs), and thousands of mutual fund distributors (MFDs), helping make its investment products easily accessible to customers. On the concern side, the company has generated monthly average assets under management from third-party distributors. If it is unable to maintain its existing relationship with its third-party distributors or attract new distributors, its business, competitiveness, results of operations and financial condition may be adversely impacted. Moreover, the company’s MAAUM were generated from customers located in the Indian states/union territory of Maharashtra, Gujarat, Karnataka, Delhi, and Tamil Nadu. A decrease in its AUM from these states/union territory could adversely impact its business and revenue from operations.
The issue has been offering 4,98,54,357 shares in a price band of Rs 253-266 per equity share. The aggregate size of the offer is around Rs 1261.32 crore to Rs 1326.13 crore based on lower and upper price band respectively. Minimum application is to be made for 56 shares and in multiples thereon, thereafter. On performance front, total revenue from operations increased by 26.91% to Rs 4,036.95 million for Fiscal 2025 from Rs 3,180.90 million for Fiscal 2024, primarily due to an increase in asset management services. Moreover, the company’s profit for the year increased to Rs 1,907.04 million from Rs 1,509.95 million in FY24.
The company seeks to continue to focus on delivering sustained investment performance. Its schemes are designed for medium to long-term investors and are guided by a research-driven approach. Its investment process comprises primarily of fundamental research both top down as well as bottom up, to get an inclusive and holistic perspective on the industry and the company. Its research process is comprehensive with the main tenets being, business quality, management quality and balance sheet quality along with growth prospects. Its research process entails developing a deeper understanding of the businesses and sectors backed by a qualified and experienced team of research analysts / portfolio managers. This research processes supports its portfolio construction and risk management. Further, its strategy involves constructing portfolios based on medium to long-term fundamentals to deliver sustained long-term risk adjusted returns to its investors.
