Highlights
| Issue Size –: 4,98,54,357 shares | Issue Open/Close – 9 Oct / 13 Oct, 2025 |
| Price Band (Rs.) 253 – 266 | Issue Size (Rs.) – 13,261 mn |
| Face Value (Rs) 10 | Lot Size (shares) 56 |
Canara Robeco Asset Management Company Limited (CRAMCL), is an Asset Management Company which provides primary activities, that includes managing mutual funds and providing investment advice on Indian equities to Robeco Hong Kong Limited (Robeco HK).
The company has a quarterly average asset under management (QAAUM) of Rs. 1,110.52 bn and 26 schemes comprising 12 equity schemes, 10 debt schemes and 4 hybrid schemes. In terms of Ranking, CRAMCL hold 19th Rank in AUM wise AMC list.
CRAMCL have a wide retail customer base, the total Monthly Average Assets Under Management (MAAUM) generated from retail investors were Rs. 1,012 bn, accounting for 86.87 pct of total MAAUM. Furthermore, the total folios invested in their schemes were 5.05 mn out of which 5 mn were individual customer folios, representing 99 pct of total folios.
Out of the total proceeds of Rs. 13,261 mn, ~Rs. 13,261 mn would be go towards existing promoter selling shareholders of the company as company expects that listing of the Equity Shares will enhance their visibility and brand image and provide liquidity.
Key Highlights
- Mutual funds have experienced a substantial increase as a proportion of household financial savings, growing from 2 pct to ~7 pct between FY21 and FY24, with the investment value expanding from Rs. 0.64 trillion to Rs. 2.39 trillion at a CAGR of 55 pct during the same period. The overall industry’s AUM is projected to sustain a high growth trajectory of 16-18 pct CAGR, reaching ~Rs.147-155 trillion between FY25-30.
- CRAMCL have a pan India geographical presence serving customers directly in more than 23 cities across 14 states and 2 union territories with a network of 25 branches. Their branch presence across India is also supported by third-party distribution partners. CRAMCL 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).
- The company witnessed a growth in investments from B-30 cities (i.e., cities beyond the top 30 cities in India), highlighting strategic focus on penetrating these emerging markets and potential to further grow presence. As of Q1FY26, CRAMCL had the second highest share of B-30 AUM amongst the top 20 AMCs (in terms of AUM) and the highest share of B-30 AUM as compared to the top 10 AMCs in India (in terms of AUM).
- CRAMCL have been able to grow their brand, business presence and expertise by leveraging their parentage. CRAMCL utilize the brand name associated with Canara Bank to promote and distribute their schemes through its extensive branch network. Meanwhile OCE provides Company with guidance on disciplined capital stewardship.
- MRAMCL’s key growth strategies include (i) Focus on delivering sustained investment performance through a robust research-driven process (ii) Grow distribution and geographical presence (iii) Focus on diversifying AUM across asset-class and product offerings (iv) Focus on leveraging technology to improve operational efficiency (v) Enhance employee value proposition to attract and retain high-quality talent.
- The sales of the company have grown by 40.4 pct CAGR Over FY23-25 and profit has grown 55.5 pct CAGR over same year. In FY25 the company reported sales of Rs. 4.04 bn, which grew 27 pct YoY. In FY25 the company posted profit of Rs. 1.94 bn which jumped 26 pct YoY. In Q1FY25, sales/profit grew 18.6 pct YoY/19.6 pct YoY.
Key Risk
- Unfavourable market changes and economic downturns may result in customer withdrawals or a decrease in customer transactions, can decline CRAMCL AUM and fees.
- Constant underperformance of any of the schemes of the company can impact AUM of the company.
- More than 90 pct of AUM of the company is in Equity schemes, mostly comes from retail clients, if market fell it might impact AUM of the company.
Financial Performance
| Particulars | FY23 | FY24 | FY25 | Q1FY25 | Q1FY26 |
| Sales (Rs. bn) | 2.05 | 3.18 | 4.04 | 1.02 | 1.21 |
| Revenue yield | 0.4% | 0.4% | 0.4% | 0.1% | 0.1% |
| Operating margin | 0.2% | 0.3% | 0.3% | 0.1% | 0.1% |
| Total expense % | 0.2% | 0.2% | 0.1% | 0.0% | 0.0% |
| Profit (Rs. bn) | 0.79 | 1.51 | 1.91 | 0.51 | 0.61 |
| PAT yield | 0.1% | 0.2% | 0.2% | 0.1% | 0.1% |
| RoNW % | 26.3% | 38.6% | 36.2% | 10.6% | 9.7% |
Peer Comparison based on FY25 Financials
| Particulars | Canara Robeco | HDFC AMC | NIPPON AMC | Aditya Birla AMC | UTI AMC |
| Sales (Rs. bn) | 4.04 | 34.98 | 20.65 | 16.59 | 14.49 |
| Revenue yield | 0.40% | 0.47% | 0.38% | 0.44% | 0.43% |
| Operating margin | 0.30% | 0.44% | 0.31% | 0.34% | 0.27% |
| Total expense % | 0.10% | 0.03% | 0.13% | 0.19% | 0.17% |
| Profit (Rs. bn) | 1.91 | 24.61 | 12.52 | 9.25 | 6.54 |
| PAT yield | 0.20% | 0.33% | 23.00% | 0.25% | 0.19% |
| RoNW % | 36.20% | 32.35% | 31.98% | 26.97 | 17.50% |
Valuation
Canara Robeco Asset Management Company Limited (CRAMCL) is 2nd oldest Asset management company managing Rs. 1.17 trillion AUM across 26 schemes comprising 12 equity schemes, 10 debt schemes and 4 hybrid schemes. At the upper end of the price band of Rs. 266, the issue is priced at a PE of 26.4x on its post issue TTM earnings.
Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Advisor before making any investment using the app. Making an investment using the app is the investor’s sole decision, and the company or its communication cannot be held responsible for it.
