Canara Bank announces IPO for mutual fund subsidiary: ‘In due course…’

Canara Robeco Asset Management Company Limited will become the fifth mutual fund company to be listed on BSE and NSE.

Canara Robeco Asset Management Company Limited, the mutual fund subsidiary of Canara Bank, will have an initial public offering (IPO) in ‘due course,’ the Bengaluru-based lender said on Wednesday.

Canara Robeco Mutual Fund was established in 1993 as Canbank Mutual Fund, getting its current name in 2007 (File Photo)

“We wish to inform you that Canara Bank has in principle approved to initiate the process of listing its Mutual Fund Subsidiary in the stock exchanges by way of an IPO, subject to following the due diligence, laid down procedures, opportune time, regulatory approvals etc.,” the bank stated in an exchange filing, according to Moneycontrol.

“In this regard, further announcements of all material developments will be made as and when required, as per applicable regulations,” the bank added.

Additionally, the proposed IPO will see the Canara Bank subsidiary become the fifth mutual fund company to get listed on the stock exchanges – BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). The first four are HDFC AMC, Nippon Life India AMC, UTI Asset Management Company, and Aditya Birla Sun Life AMC.

What is Canara Robeco Asset Management Company?

It was set up in 1993 as Canbak Mutual Fund, and received its current name in 2007, as a result of Canara Bank entering into a partnership with Robeco Group, a Dutch asset manager.

The total assets managed by Canara Robeco as of November 2023 are worth ₹78,398.51 crore, as per Moneycontrol.