Canara Robeco Asset Management Company Ltd. has fixed the price band of its ₹1,326 crore initial public offer (IPO), which will open for subscription on Thursday, October 9.Price band for the IPO has been fixed between ₹253 – ₹266 per share.Retail investors can bid for one lot of 56 shares, which will entail a minimum investment of ₹14,896 per lot, at the upper end of the price band. 35% of the IPO has been reserved for retail investors.
50% of the issue has been reserved for Qualified Institutional Bidders (QIBs), while the remaining 15% is for non-institutional HNIs.At the upper end of the price band, Canara Robeco AMC will have a market capitalization of ₹5,304 crore.The issue will close for subscription on Monday, October 13. SBI Capital, Axis Capital and JM Financial are the book running lead managers of the issue.
Allotment of shares to eligible shareholders will take place on October 14, while the listing of the shares will take place on Thursday, October 16.
About The IPO
The issue is a complete Offer For Sale (OFS), of up to 4.98 crore shares, where existing shareholders, also classified as promoters, will be selling shares.Canara Bank, classified as a promoter, will be selling 2.59 crore shares, while Orix Corporation Europe, will be selling up to 2.39 crore shares.The shares currently carry a face value of ₹10 per share.Since this is an offer for sale, the company will not receive any proceeds from this IPO.
About The Company
Incorporated in 1993, Canara Robeco AMC evolved from Canbank Mutual Fund, which was founded in 1987. The company is a joint venture between Canara Bank and Orix Corporation Europe N.V. The partnership between the two entities was formed in 2007.At the end of the June quarter, the company’s total Assets Under Management (AUM) stood at ₹1.17 lakh crore, while revenue at the end of the quarter stood at ₹121.3 crore, with a net profit of ₹61 crore.
