Canara Robeco's Strategic Offer: Navigating IPO Amid Market Volatility

Canara Robeco Asset Management Company filed for an IPO amid equity market volatility. The offer for sale involves 4.98 crore shares by Canara Bank and Orix Corporation, with no fresh issues. Proceeds go to sellers, and the company remains the country's second-oldest asset manager.

Canara Robeco Asset Management Company has moved forward in the financial landscape, filing preliminary documents with the Securities and Exchange Board of India (Sebi) for its upcoming initial public offering (IPO). The filing occurs as the IPO market faces headwinds due to fluctuations in the equity market.

The IPO will be an entirely offer for sale (OFS) involving 4.98 crore equity shares, with no fresh issue component, as stated in the Draft Red Herring Prospectus (DRHP) on Thursday. Promoters Canara Bank and ORIX Corporation Europe N.V. will offload 2.59 crore and 2.39 crore shares, respectively, under the OFS clause.

Given that the IPO is strictly an OFS, Canara Robeco will not benefit directly from public investments, as proceeds will go to the existing shareholders. Founded in 1993 and in partnership with Robeco since 2007, the asset management firm stands as India's second-oldest, handling 25 schemes with an average AUM of Rs 1.08 lakh crore.

(With inputs from agencies.)