Canara Robeco Asset Management Company files for IPO: Report

The asset manager, a joint venture between India's state-run Canara Bank and Netherlands-headquartered ORIX Corporation Europe (a subsidiary of Japan’s ORIX Corporation), will not issue new shares in the IPO.

Instead, a total of 49.8 million shares will be offloaded by the existing stakeholders.

Canara Bank plans to reduce its holding by 13%, selling 25.92 million shares, while ORIX will divest 23.93 million shares.

The listing comes at a time of increasing global market volatility, with uncertainties such as U.S. tariff changes prompting companies to reassess listing plans amid fears of weak investor response.

Despite India ranking as the second-largest IPO market globally in terms of proceeds in 2024, IPO volumes have dropped nearly 15% so far this year, according to LSEG data.

Canara Robeco, which manages assets exceeding ₹1 trillion ($11.7 billion), competes with large players such as HDFC Asset Management, Nippon Life India Asset Management, and UTI Asset Management.

According to its draft prospectus, the company’s profit surged 91% in the fiscal year ended March 2024 compared to the previous year, while its revenue from operations rose 55.4%.

The filing also highlighted a growing shift in Indian households toward financial assets.

While physical assets still dominate, mutual fund investments have gained traction, driven by rising financial awareness.

Between FY21 and FY24, mutual funds as a share of household financial savings climbed from 2% to around 7%, with total investment value more than doubling to ₹2.4 trillion, according to data from the Reserve Bank of India and Crisil Intelligence cited in the prospectus.