Canara Robeco Asset Management Company Limited is India's second oldest asset management company ('AMC'). The primary activities include managing mutual funds and providing investment advice on Indian equities to Robeco Hong Kong Limited ('Robeco HK'), a member of the Promoter Group. As of June 30, 2025, they managed 26 schemes comprising 12 equity schemes, 10 debt schemes and four (4) hybrid schemes with a quarterly average asset under management ('QAAUM') of Rs 1,110.52 billion as of June 30, 2025. Company was incorporated in 1993 as Canbank Investment Management Services Limited to manage the assets of Canbank Mutual Fund. Subsequently, in 2007, they became Canara Robeco Asset Management Company Limited, a joint venture, when Canara Bank entered into an agreement with ORIX Corporation Europe N.V. (previously known as Robeco Groep N.V. ('Robeco')) ('OCE'), whereby Robeco acquired a 49% stake in the Company while the remaining 51% was retained by Canara Bank. Company has witnessed a robust growth in the QAAUM growing at a CAGR of 28.60% between March 31, 2023, to March 31, 2025. The market share as a percentage of QAAUM remained steady, increasing from 1.54% as at March 31, 2023 to 1.61% as at March 31, 2024, and was 1.53% as at March 31, 2025, 1.61% as at June 30, 2024, and 1.54% as at June 30, 2025. Company has a wide retail customer base and as of June 30, 2025, the total Monthly Average Assets Under Management ('MAAUM') generated from retail investors (inclusive of retail and high-net worth individual investors) were Rs 1,011.70 billion, accounting for 86.87% of the total MAAUM. Furthermore, as of June 30, 2025, the total folios invested in the schemes were 5.05 million out of which 5.00 million were individual customer folios, representing 99.01% of the total folios. As of June 30, 2025, they had the second highest share of retail AUM amongst the top 20 AMCs in India and the highest share of retail AUM compared to top 10 AMCs (basis AUM). Company 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 as of June 30, 2025. The branch presence across India is also supported by our third-party distribution partners. As of June 30, 2025, they had 52,343 empanelled distribution partners across India, including Canara Bank, 44 other banks, 548 national distributors ('ND') and 51,750 mutual fund distributors ('MFDs'). As per financial performance, Canara Robeco Asset Management Company Limited has posted total income / net profits of Rs 204.80 Cr / 79 Cr (FY23), Rs 318.78 Cr / Rs 150.99 Cr (FY24), Rs 403.99 Cr / 190.70 Cr (FY25) and Rs 121.34 Cr / 60.98 Cr (Q1 FY26). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 7.96 and average RoNW of 30.97% for last three fiscals. Issue is priced at a P/BV of 8.03 as per NAV of Rs 33.13/- as on 30.06.25. If we attribute latest earnings of FY24, FY25, TTM and annualised FY26 on equity post issue, then asking price is at a P/E of around 35.13, 27.82, 26.41 and 21.75 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Axis Capital Limited, JM Financial Limited and SBI Capital Markets Limited are associated with this IPO, and have handled 131 IPOs in last three fiscal years. ( As on 09.10.25 ) As per financials, Canara Robeco Asset Management Company Limited has shown good growth, RoNW is 31.7% and P/E is 35.13, 27.82, 26.41 and 21.75 respectively as per FY24, FY25, TTM and annualised FY26 earnings. So issue looks fully priced. Company is India's second oldest asset management company, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment