Canara Robeco AMC Files For IPO, Canara Bank, OCE To Offload 49.8 Million Shares

Canara Robeco Asset Management Company (AMC), has filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). The IPO will be a pure offer for sale (OFS), with promoters Canara Bank and Orix Corporation Europe N.V. (OCE) planning to offload a combined 49.8 million shares.

If the OFS goes through in full, Canara Bank will sell 13 per cent stake, amounting to 25.9 million shares, while OCE will divest 12 per cent, equivalent to 23.9 million shares. No proceeds from the sale will flow into the company.

SBI Capital Markets, Axis Capital, and JM Financial are acting as the book-running lead managers for the issue. After the IPO, Canara Robeco will list its shares on both the BSE and the NSE.

Canara Robeco, a 51:49 joint venture between Canara Bank and OCE, manages 25 mutual fund schemes - 12 equity, 10 debt, and three hybrid schemes. As on December 31, 2024, its average quarterly assets under management (AUM) stood at Rs 1.08 lakh crore. 

It has maintained a steady track record of dividend payouts, distributing Rs 45 crore to shareholders during the nine-month period ended December 2024.

As on December 31, 2024, it's net worth stood at Rs 558.35 crore, up from Rs 409.63 crore a year earlier. Revenue from operations for the nine-month period rose to Rs 302.89 crore, compared to Rs 222.91 crore the previous year. Net profit after tax (PAT) reached Rs 148.98 crore, against Rs 106.22 crore a year ago. The company reported a basic and diluted earnings per share (EPS) of Rs 7.47 for the nine-month period ending December 2024, up from Rs 5.33 during the same period in 2023.

On a full-year basis, for the fiscal year ending March 31, 2024, the company posted revenue from operations of Rs 318.09 crore and a net profit of Rs 150.99 crore, significantly higher than Rs 204.60 crore and Rs 79.01 crore, respectively, recorded in fiscal 2023.

The company maintained strong liquidity, with cash and cash equivalents of Rs 29.82 crore as of December 31, 2024, compared to Rs 55.90 crore at the end of December 2023. Cash flows from operating activities stood at Rs 108.62 crore for the nine months ending December 2024, while cash flows from investing and financing activities resulted in net outflows of Rs 61.69 crore and Rs 45.79 crore, respectively.

For the nine months period of FY24 ending December 31, 2024, Canara Robeco AMC reported a net profit of Rs 148.98 crore, up from Rs 106.22 crore in the same period last year. 

Revenue from operations during the period stood at Rs 302.89 crore, compared to Rs 222.91 crore a year ago. Including other income, total income for the nine months reached Rs 303.05 crore. Expenses during the period totalled Rs 103.71 crore, up from Rs 86.83 crore the previous year, while profit before tax surged to Rs 199.33 crore from Rs 136.22 crore.