The Bengaluru-based Indian public sector bank – Canara Bank in an exchange filing on December 27 gave a go-ahead for the Initial Public Offering (IPO) launch of its mutual fund subsidiary ‘Canara Robeco Asset Management Company Limited’. Canara Robeco AMC will be the fifth mutual fund company to hit the stock markets in India following HDFC AMC, Nippon Life India AMC, UTI Asset Management Company and Aditya Birla Sun Life AMC.
The details of the initial public offering are yet to be finalised. “The modalities of listing will be decided in due course. The bank will make further announcements of all material developments with regard to the same, as and when required, as per applicable regulations,” the Bank noted in the regulatory filing.
The Canara Robeco AMC was incorporated in 1993 as ‘Canbank Mutual Fund’ but was renamed to as it is now in 2007 with a strategic partnership between Canara Bank and ORIX Corporation Europe N. V. (formerly known as Robeco Groep N. V.). The company currently manages assets worth about Rs 76 thousand crore, operating around 15 mutual fund schemes.
In its latest financial report, Canara Bank posted a net profit of Rs 3,606 crore during the the July-September quarter of FY23-24, a 42.8% growth over the same period in last financial year.
