Canara Robeco Asset Management Company listed successfully today on October 16, 2025, at a slight premium in spite of good investor attention. The IPO, valued at ₹1,326 crore, saw robust demand across all categories of investors, depicting faith in India's rapidly growing mutual fund industry.
Canara Robeco AMC IPO was launched for subscription on October 9 and ended on October 13, 2025. The issue came in a band of ₹253 to ₹266 per share, with a lot size of 56 shares, seeking an investment of at least ₹14,896 for retail investors. The IPO consisted solely of an Offer for Sale (OFS) of 4.99 crore shares, so all the proceeds accrued to selling shareholders—Canara Bank and ORIX Corporation Europe N.V. and not the company. After the IPO, promoter shareholding declined from 100% to 75%.
Canara Robeco IPO saw huge response, getting subscribed 9.74 times in total. The Qualified Institutional Buyers (QIB) segment was at the forefront of demand, with humongous 25.92 times subscription, while Non-Institutional Investors (NII) subscribed 6.45 times and Retail Individual Investors (RII) bid 1.91 times their allocated quota. The allotment process was completed on October 14, and the shares were credited in investors' demat accounts on October 15.
Prior to listing, grey market premium (GMP) for Canara Robeco IPO kept fluctuating. On the last subscription day (October 13), the GMP stood at about ₹8, reflecting a 3% listing gain. But on October 15, immediately before listing, the GMP reached ₹20-₹22, reflecting potential listing gains of about 7.5-8.3% above the top price band of ₹266. This represented an expected listing price of about ₹286-₹288 per share.
Canara Robeco stocks listed on both BSE and NSE at ₹280.25 per unit, a 5.36% premium over the issue price of ₹266. The stock saw high buying interest after listing, rising almost 18% on intraday trade to a high of ₹317.15. Market capitalisation at the listing was around ₹5,589 crore, which crossed the figure of ₹6,000 crore later as the stock rose.
Canara Robeco Asset Management Company was founded in 1993 and is the second oldest mutual fund house in India. It is a joint venture between Canara Bank (51%) and ORIX Corporation Europe (49%). The company had assets under management (AUM) worth ₹1,17,513 crore as of June 2025 and has 26 mutual fund schemes in equity, debt, and hybrid categories. During FY25, the firm had total income of ₹404 crore and profit after tax of ₹191 crore, witnessing healthy 26% year-on-year growth. EBITDA margin of the firm was a staggering 65.4%, while return on net worth was 36%
Top domestic brokerage houses have been positive about Canara Robeco's performance. PL Capital Research started coverage with a 'Buy' rating and target price of ₹320 per share, which suggested more than 20% upside from the IPO price. Prabhudas Lilladher also gave a 'Buy' rating with a target of ₹320, observing that more robust equity market performance would propel more market share and underpin an estimated AUM CAGR of about 20% in FY26-28,at about 3% over industry average. But some analysts warned that even though fundamentals were robust, the IPO was fully priced at P/E of 28x and P/B of 8.84x, with not much scope for short-term appreciation.
Canara Robeco AMC's listing displays consistent investor faith in India's mutual fund sector's long-term growth path. Although the initial listing was subtle, the rally in the stock afterwards and positive analyst recommendations indicate medium to long-term value potential. Yet, as the IPO comprised an OFS without any new capital introduction, near-term growth drivers are limited. Long-term investors with a risk appetite for exposure to small-cap stocks in the asset management sector might find Canara Robeco a compelling trading.
