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Informist, Monday, Oct. 6, 2025

 

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--Canara Robeco AMC:See equity portfolio AUM 85-95% of total AUM going ahead
--Canara Robeco AMC: To increase share of debt funds in our AUM 
--CONTEXT: Comments by Canara Robeco AMC management at IPO event
--Canara Robeco AMC: To continue to focus on equity fund AUM growth post IPO 
--Canara Robeco AMC: May evaluate launching specialised funds as SEBI allows
--Canara Robeco AMC:AI use work in progress; initial use to be customer svcs 
--JM Fincl on Canara Robeco AMC IPO: Price low to attract retail shrholder 
--CONTEXT: JM Fincl is book-running lead manager of Canara Robeco AMC IPO

 

MUMBAI – Canara Robeco Asset Management Co. plans to remain an equity-focused fund house after its initial public offering, even as it may launch some more debt mutual funds to cater to some opportunities in the market, the fund house's Chief Executive Officer Rajnish Narula said Monday. Canara Robeco, a joint venture between Canara Bank Ltd. and Japan-based Orix Corp., is in the process of being listed on the exchanges with its IPO opening Thursday.

 

The equity assets under management as a percentage of total AUM are likely to remain between 85% and 95%, against 91% in the June quarter, Narula said in a press conference ahead of the IPO. His remarks came shortly after Chief Operating Officer Hilde Faber said the fund house would plan to launch more debt schemes soon and the share of debt schemes in the AUM may increase. Canara Robeco is also evaluating launching specialised funds as allowed by the Securities and Exchange Board of India, the company's management told the media.

 

Narula said the fixed income portfolio's focus will be on risk-adjusted returns rather than absolute returns, and it would remain conservative on credit calls. Canara Robeco AMC had opened shop in 2017 as a debt-focused fund house, before shifting to equity focus after finding those markets more resilient following the Lehman Brothers crash and global financial crisis, he said. Canara Robeco AMC had average assets under management of INR 1.1 trillion in the June quarter.

 

Anchor investor bidding will be on Wednesday, and the issue will close on Oct. 13 after opening for retail investors on Thursday. The issuance has secured "very strong names" as anchor investors, according to Axis Capital, one of the book-running lead managers.

 

Another manager on the issuance, JM Financial Ltd, said the price band was kept relatively low to attract retail investors. The asset management company set has set a price band of INR 253-INR 266 per share in consultation with the book-running lead managers. The third, SBI Capital Markets Ltd., batted away concerns that the low price band was due to the flurry of IPOs in the market dragging away investors, and said the company had a very strong track record in a very strong sector. 

 

As for other strategies that Canara Robeco was pursuing, the management said that integrating the use of artificial intelligence into their workflow was a work in progress. In terms of tech-driven innovation, they expect to use AI at first to augment customer-facing services. Canara Robeco AMC would also continue to leverage its access to Canara Bank's nearly 10,000-strong branch network for distribution even after the promoter divests some stake, the management said.

 

Canara Bank is offering to sell 25.92 million shares in the public offer, and ORIX Corp. Europe N.V., another promoter, is looking to sell 23.93 million shares in Canara Robeco AMC. They plan to raise around INR 13.5 billion from the offer for sale. Shares of the state-owned lender ended up 0.7% at INR 126.76 on the National Stock Exchange.  End

 

Reported by Aaryan Khanna

Edited by Vandana Hingorani

 

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