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BACKGROUND

Incorporated in 1993 and rebranded in 2007 as a joint venture between Canara Bank (51%) and Robeco (49%), the Company manages 26 mutual fund schemes with a QAAUM of ?1,110.52 billion as of June 30, 2025, of which 87% is sourced from retail and HNI investors. Its equity-oriented portfolio includes large & mid-cap, flexicap, multi-cap, focused, ELSS, value, and thematic sectoral funds, while its debt portfolio spans liquid, short-duration, corporate bond, gilt, dynamic bond, and hybrid funds. The Company has a strong retail franchise, a diversified scheme mix, and a disciplined investment approach, enabling it to cater to a wide range of investor segments across India.

Details of the Issue:

The public issue comprises an Offer for Sale of 4.99?Cr shares, aggregating to Rs. 1,326?Cr.

Investment Rationale

* Strong Brand & Legacy

* Diversified Product Mix

* Rising Retail AUM

* Integrated technology-led operations with a well-established digital ecosystem

Valuation and Recommendation:-

Canara Robeco AMC, with FY25 QAAUM of Rs. 103,344 Cr growing at a healthy 29% CAGR over FY23–FY25, is a highly equity-focused AMC, with 92% of its AUM in equity-oriented schemes, well above the industry average of 48%. Despite its smaller scale relative to peers like HDFC AMC and Nippon AMC, the company demonstrates strong profitability, with an EBITDA margin of 65.4% and ROE of 32%, supported by a resilient retail base. Its SIP AUM grew at a CAGR of 48%, well above the industry average. Valuation multiples remain attractive, with an EV/EBITDA of 19.9x and P/E of 27.8x, lower than larger AMCs, suggesting upside potential. Given its strong growth trajectory, high equity orientation, and attractive valuation relative to peers, we assign a “Subscribe” rating with positive outlook.

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SEBI Registration number is INH00000176