IPO Note : Canara Robeco Asset Management Company Ltd by Choice Broking Ltd
Salient features of the IPO:
* Canara Robeco Asset Management Company Ltd. (CRAMC), Incorporated in 1993 as Canbank Investment Management Services Ltd. to manage Canbank Mutual Fund’s assets, the company was fully owned by Canara Bank. In 2007, it became Canara Robeco Asset Management Company Ltd. following a joint venture with ORIX Corporation Europe N.V. (formerly Robeco Groep N.V.), with Canara Bank holding 51% and OCE acquiring a 49% stake.
* The company is India’s second-oldest AMC, primarily engaged in managing mutual funds and offering investment advisory services on Indian equities to Robeco Hong Kong Limited (“Robeco HK”), part of its Promoter Group. As of June 30, 2025, it managed 26 schemes including 12 equity, 10 debt, and four hybrid schemes with a quarterly average assets under management (QAAUM) of Rs. 1,11,052cr.
* This public issue is a solely comprise of OFS (Rs. 1,261.32 - 1,326.13cr). The company will not receive any proceeds from the OFS portion.
Key competitive strengths:
* Recognized brand with legacy of operations and established parentage
* Operations led by professional management team and established corporate governance standards
* Well-diversified equity products mix backed by research-driven investment process
* Pan-India multi-channel sales and distribution network
* Expanding proportion of AUM contributed by individual investors and SIP contributions
* Integrated technology-led operations with a well-established digital ecosystem
Business strategy:
* Focus on delivering sustained investment performance through a robust research-driven process
* Grow the distribution and geographical presence
* Focus on Diversifying the AUM across Asset-Class and Product Offerings
* Focus on leveraging technology to improve operational efficiency
* Enhance the employee value proposition to attract and retain high-quality talent
Risk and concerns:
* Adverse market or economic conditions may trigger customer withdrawals
* Business is subject to extensive regulation
* Equity scheme performance materially influences overall AUM
* Dependent on several key personnel
* Competition
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SEBI Registration no.: INZ 000160131
