Can Canara Robeco AMC retain equity edge?

Canara Robeco Asset Management Co. (CRAMC), India's second-oldest asset manager, is set to test investor appetite with its ₹1,326-crore initial public offering (IPO), banking on its strong equity focus, rapid growth momentum, and the trusted legacy of its joint promoters-state-run Canara Bank and Netherlands-based Orix Corp. Europe.

- Mayur Bhalerao mayur.bhalerao@livemint.​com MUMBAI

The IPO, which opens Thursday and closes Monday, comprises an offer-for-sale of up to 49.8 million equity shares by existing shareholders, priced at ₹253-266 per share.

Founded in 1993 and rechristened in 2007 after Robeco acquired a 49% stake, Canara Robeco has transformed from a modest fund house into one of the fastestgrowing players in India's asset management industry.

As of June 30, the fund house managed 26 schemes across equity (12), debt (10), and hybrid (4), with quarterly average assets under management (QAAUM) of about ₹1.1 trillion. In just two years, AUM surged 1.8 times from ₹625 billion in March 2023, while the equity book nearly doubled to over ₹1.03 trillion.

Its ability to scale rests on a dual advantage: the distribution of Canara Bank's 9,800branch footprint and a 52,000strong distributor base. The AMC has also emerged as a leader in mobilizing assets beyond the top 30 cities, ranking first among the top 10 AMCs and second in the top 20.