Canara Robeco Asset Management Company
In 2007, ORIX Corporation Europe N.V. (previously known as Robeco Groep N.V. (Robeco)) (OCE) acquired a 49% stake in the Company while the remaining 51% was retained by Canara Bank. The company also provide offshore advisory services to Robeco Hong Kong, one of the members of Promoter Group, 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.
Canara Robeco has been able to grow brand, business presence and expertise by leveraging parentage. Canara Bank is a leading public sector commercial bank with a strong network of 9,861 branches and four international branches. OCE is a 100% owned subsidiary of ORIX Corporation, a Japanese conglomerate listed on the Tokyo Stock Exchange and New York Stock Exchange and operating in diverse sectors.
QAAUM has increased at a CAGR of 28.60% from March 2023 to March 2025. The retail customer base (inclusive of retail and high-net worth individual investors) contributes significant Rs 1.01 lakh crore or 86.87% of total Monthly Average Assets Under Management (MAAUM). Furthermore, 99.01% or 5.00 out of total 5.05 million folios were individual customer folios. The share of retail AUM was second highest compared to top 20 AMCs, while it was highest compared to top 10 AMCs.
The share of equity-oriented QAAUM to total QAAUM has increased from 88.43% end March 2023 to 91.69% at end March 2025. QAAUM generated from equity-oriented schemes increased at a strong CAGR of 30.96% from Rs 55253 crore at end March 2023 to Rs 94757 crore at end March 2025. The share of equity (including equity-oriented hybrid) AUM was third highest amongst the top 20 AMCs in India and the highest compared to top 10 AMCs.
The share of B-30 AUM is second highest amongst the top 20 AMCs and the highest as compared to the top 10 AMCs. MAAUM from B-30 cities was Rs 27924 crore or 23.98% of total MAAUM at end June 2025.
The diverse set of product mix, brand name, wide presence, legacy of consistent returns, focusing on developing a digital platform which provides an ease of customer onboarding, and customer centric focus has helped to attract new customers across various risk profiles.
The portfolio of equity-oriented schemes includes a large and mid-cap fund, a large cap fund, a flexi cap fund, a small cap fund, an aggressive hybrid fund, an equity-linked saving scheme (ELSS) tax saver fund, a multi-cap fund, a mid-cap fund, a focused fund, three sectoral funds (which includes consumer trends, infrastructure and manufacturing funds); a balanced advantage, a multi asset allocation fund and value fund. Seven out of 15 equity-oriented schemes have been managed for more than 10 years.
Debt portfolio amongst others includes an overnight fund, a banking and public sector undertaking debt fund, a corporate bond fund, a dynamic bond fund, a gilt fund, a medium to long duration fund, a low duration fund, a liquid fund, an ultra-short duration, a short- duration fund and a conservative hybrid fund. The fund has invested 75.83% debt portfolio in AAA/A1+ rated instruments while remaining were invested across cash and cash equivalent, sovereign funds and corporate debt market development fund.
The complex and volatile instruments are avoided in line with investment strategy and focus on liquid investment opportunities.
The AMC has a pan India geographical presence serving customers directly in more than 23 cities across 14 states and two (2) union territories with a network of 25 branches at end June 2025. The branch network is supported by 52,343 empanelled distribution partners across India, including Canara Bank, 44 other banks, 548 national distributors (ND) and 51,750 mutual fund distributors (MFDs).
The Offer and the Objects
The initial public offer comprises offer for sale of 4,98,54,357 equity shares, aggregating to Rs 1261.32 crore at the lower price of Rs 253 and Rs 1326.13 crore at the upper price band of Rs 266.
Offer for sale from promoters comprises sale of 2,59,24,266 equity shares by Canara Bank and up to 2,39,30,091 equity shares by ORIX Corporation Europe N.V. The promoter shareholding in the company would decline from pre-IPO level of 100% to 75% post IPO.
The issue, through the book-building process, will open on 09 October and will close on 13 October 2025.
The company expects that listing of the Equity Shares will enhance visibility and brand image and provide liquidity to Shareholders and will also provide a public market for the Equity Shares in India.
Strengths
AMC benefit from a recognized brand and established parentage of Canara Bank, which is a financial conglomerate in India, with 13 subsidiaries. It also benefits from OCE?s global expertise in investment management.
AMC leverages Canara Bank?s brand and its extensive network of branches and broad customer base. MAAUM generated through Canara Bank branches was 8% of total MAAUM.
Well-diversified equity products mix backed by research-driven investment process. Significant increase in equity-oriented QAAUM at a CAGR of 30.96% from FY2023 to FY2025.
Pan-India multi-channel sales and distribution network in addition to third-party distributors, and digital platforms.
Retail and HNI customer segment contribute 87% of AUM and 99% of customer folios, which is highest among top 10 AMC.
Integrated technology-led operations with a well-established digital eco-system targeted to improve customer convenience, accessibility, digital payment options, customer service and engagement.
Weaknesses
The performance of schemes is critical to retaining existing customers and attracting new customers, which is an important factor in AUM?s growth which depends on general market conditions, competition, product offerings, investment decisions.
Underperformance by equity-oriented schemes accounting for 91.17% of QAAUM may have a disproportionate adverse impact on business and revenue. Also, equity markets are inherently volatile and subject to fluctuations due to economic, political, and social factors.
Equity-oriented schemes often entail higher management costs due to the active involvement required in market analysis and strategy formulation.
There is dependence on third-party distributors accounting for 73.45% of MAAUM. Any failure to secure new distribution relationships or maintain existing relationships, may adversely affect competitiveness.
A significant proportion of AUM at 62.11% of MAAUM is generated from customers located in 5 states of Maharashtra, Gujarat, Karnataka, Delhi, and Tamil Nadu and exposes the company to region-specific economic, political, and regulatory changes.
MF industry is rapidly evolving and intensely competitive. New players are also entering into the market. The industry is also subject to frequent changes in regulations, evolving investor preferences, and varying market conditions.
SEBI has prescribed upper limit on total expense ratio, which can be reviewed and revised from time to time. Any reduction in expense ratio may impact revenue and profitability.
Valuation
Canara Robeco AMC has recorded 19% growth in revenue from operations to Rs 121.07 crore in the three-month period ended June 2025. The operating profit improved 16% to Rs 81.77 crore, while the net profit has increased 19% to Rs 60.98 crore in Q1FY2026. Net profit has increased at strong 2-year CAGR of 55% to Rs 190.70 crore in FY2025.
Within the mutual fund industry, Canara Robeco has the 18th largest average AUM of Rs 1.11 lakh crore at end June 2025. Canara Robeco Mutual Fund has seventh highest return on equity (at 36.3% for FY2025) as compared to top 20 AMCs whereas it has the third highest return on equity as compared to top 10 AMCs.
EPS on post-issue equity for TTM ended June 2025 works out to Rs 10.1. At the price band of Rs 253 to Rs 266, P/E works out to 25.1-26.4 times of EPS for TTM ended June 2025.
Among the peers, HDFC AMC (third largest mutual fund) is trading at P/E multiple of 45.7 times EPS for TTM end June 2025, Nippon Life India Asset Management (fourth largest mutual fund) is trading at 41.3 times, Aditya Birla Sun Life AMC (sixth largest mutual fund) at 24.3 times and UTI AMC (seventh largest mutual fund) is trading at 23.9 times.
Canara Robeco is valued market capitalization of Rs 5305 crore at upper price band and is offered at M-cap/Average AUM multiple of 0.05 times, compared with HDFC AMC trading at M-cap/AAUM of 0.14 times, Nippon Life India Asset Management at 0.09 times, Aditya Birla Sun Life AMC at 0.06 times and UTI AMC 0.05 times.
| Canara Robeco Asset Management Company: Issue highlights | ||
| Offer for Sale Offer size (in Rs crore) | ||
| - On lower price band | 1261.32 | |
| - On upper price band | 1326.13 | |
| Offer size (in no of shares crore) | 4.99 | |
| Price band (Rs) | 253-266 | |
| Minimum Bid Lot (in no. of shares) | 56 | |
| Post issue capital (Rs crore) |
| |
| - On lower price band | 199.42 | |
| - On upper price band | 199.42 | |
| Post-issue promoter & Group shareholding (%) | 75.00 | |
| Issue open date | 09-10-2025 | |
| Issue closed date | 13-10-2025 | |
| Listing | BSE, NSE | |
| Rating | 45/100 | |
| Canara Robeco Asset Management Company: Financials | |||||
|
| 2303 (12) | 2403 (12) | 2503 (12) | 2406 (3) | 2506 (3) |
| Income from Operations | 204.60 | 318.09 | 403.70 | 101.80 | 121.07 |
| OPM (%) | 55.18 | 63.23 | 65.42 | 69.07 | 67.54 |
| OP | 112.89 | 201.14 | 264.08 | 70.31 | 81.77 |
| Other Income | 0.20 | 0.69 | 0.30 | 0.05 | 0.27 |
| PBDIT | 113.09 | 201.84 | 264.38 | 70.37 | 82.04 |
| Interest (Net) | 1.92 | 1.87 | 1.71 | 0.44 | 0.46 |
| PBDT | 111.17 | 199.96 | 262.67 | 69.93 | 81.58 |
| Depreciation / Amortization | 4.15 | 4.78 | 5.03 | 1.16 | 1.70 |
| PBT before EO | 107.02 | 195.18 | 257.64 | 68.76 | 79.88 |
| EO | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PBT after EO | 107.02 | 195.18 | 257.64 | 68.76 | 79.88 |
| Tax Expenses | 28.02 | 44.19 | 66.94 | 17.69 | 18.90 |
| PAT | 79.00 | 151.00 | 190.70 | 51.07 | 60.98 |
| EPS * | 4.0 | 7.6 | 9.6 | 10.2 | 12.2 |
| *EPS annualized on post issue equity capital of Rs 199.42 crore of face value of Rs 10 each | |||||
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