Canara Robeco IPO: Asset Management Company’s Shares Make Modest Debut With 5% Listing Gains

Canara Robeco Asset Management IPO Listing Price: Canara Robeco Asset Management Co shares made their D-street debut on October 16. Shares of the asset management company listed with ,modest gains on the exchanges. Canara Robeco Asset Management shares listed with over 5 per cent premium compared to the issue price.

On the NSE, Canara Robeco Asset Management shares made their debut at Rs 280.25 per share with gains of 5.35 per cent against the issue price of Rs 266 per share. Shares of Canara Robeco Asset Management listed at Rs 280.25 apiece with 5.35 per cent gains on the BSE as well.

Applicants who applied for Canara Robeco Asset Management IPO in the retail category and were allotted a minimum of one lot or 56 shares would have made a profit of at least Rs 798 (Rs 280.25- Rs 266 x 56). At the time of writing 2.66 lakh shares of Canara Robeco Asset Management traded hands on the BSE. Canara Robeco Asset Management’s total market capitalisation stood at Rs 5,588.67 crore.

Canara Robeco Asset Management IPO: Details

Canara Robeco Asset Management Ltd raised Rs 1,326.13 crore through its public issue. Canara Robeco Asset Management IPO consisted of a pure offer-for-sale of 49.9 million shares. Canara Robeco Asset Management IPO price band was set between Rs 253 and Rs 266 per share.

The minimum lot size for application for retail investors was fixed at 1 lot comprising 56 shares, which aggregated to an investment of Rs 14,896. Canara Robeco Asset Management IPO saw strong demand in its three-day subscription window. Canara Robeco Asset Management IPO was subscribed 9.74 times across applicant categories. As many as 339.98 million shares of Canara Robeco Asset Management were bid for against the 34.89 million shares offered for subscription.

In the three-day bidding window, qualified institutional buyers led the demand for Canara Robeco Asset Management IPO and booked the issue 25.92 times. Non-institutional investors booked their quota in Canara Robeco IPO 6.45 times and retail investors booked their quota 1.91 times.

Canara Robeco Asset Management IPO: Objective

Canara Robeco Asset Management Ltd will not receive the proceeds of the public issue. The proceeds of Canara Robeco Asset Management Ltd will go to the selling shareholders who participated in the offer-for-sale.

Canara Robeco Asset Management Co: Business Model

Canara Robeco's business centers on managing mutual funds and other investment portfolios. The company’s revenue model includes charging a fee based on its total assets under management (AUM).The asset management company earns additional income from advisory services. Canara Robeco AMC also uses a multi-channel sales and distribution network to cater to investors. The AMC’s network includes its parent company Canara Bank, a large number of third-party distributors, and independent financial advisors.

Canara Robeco Asset Management Co: Peers

Canara Robeco's primary competitors in the Indian asset management industry include major listed fund houses as well as larger, unlisted players. Some of the major listed competitors of Canara Robeco AMC include HDFC Asset Management Company (AMC), Nippon Life India Asset Management, Aditya Birla Sun Life AMC and SBI Mutual Fund and ICICI Prudential Mutual Fund.

Canara Robeco share price traded around Rs 290 apiece on the NSE up by 3.84 per cent on the NSE. On the other hand the stock traded at Rs 290.25 apiece up by 3.57 per cent on the BSE at the time of writing.