Canara Robeco AMC Debuts on Stock Market, Exceeds IPO Price

On October 16, 2025, Canara Robeco AMC, a joint venture between Canara Bank and Orix Corporation Europe NV, made its much-anticipated market debut. The company's shares opened at Rs 280.25, a 5.4% premium over the IPO price of Rs 266, reflecting strong investor demand.

The Rs 1,326 crore public issue, which was open from October 9-13, 2025, witnessed overwhelming response, with investors subscribing 9.74 times overall. The Qualified Institutional Buyers (QIB) segment led the IPO with a massive 25.9x subscription, while Non-Institutional Investors (NII) subscribed 6.45x and retail investors bid 1.9x their allotted quota.

However, despite the strong demand, analysts noted that the IPO was fully priced, leaving little room for immediate upside. "While the franchise has strong parentage and robust financial performance, valuations leave little room for short-term gains," they said. At the IPO price of Rs 266, the stock commanded a price-to-earnings (P/E) multiple of ~28x and a price-to-book value of 8.84x.

Canara Robeco AMC, India's second-oldest mutual fund house, is known for its consistent profitability and operational efficiency. As of March 2025, the company reported Rs 404 crore in total income and Rs 191 crore in PAT, marking a 26% year-on-year growth. Its EBITDA margin stood at 65.4%, one of the highest among asset managers, while return on net worth (RoNW) was 36%.

Despite the limited short-term upside, long-term investors may benefit from India's growing mutual fund penetration, which Canara Robeco AMC is well-positioned to capitalize on with its strong brand and distribution reach.