Canara Robeco AMC IPO opens today; brokerage sees strong potential, reasonable pricing
According to InCred, Canara Robeco AMC has maintained a steady market share of around 1.5 per cent as of June 2025, backed by its strategic focus on active equity funds.
- Oct 9, 2025,
- Updated Oct 9, 2025 9:45 AM IST
InCred Equities has expressed optimism over the upcoming initial public offering (IPO) of Canara Robeco Asset Management Company (AMC), calling it a "modest valuation with high potential." The brokerage highlighted the AMC's strong retail franchise, focus on active equity funds and steady market share as key strengths that could support further growth post listing. The IPO opens for subscription today (October 9) and will close on October 13.
According to InCred, Canara Robeco AMC has maintained a steady market share of around 1.5 per cent as of June 2025, backed by its strategic focus on active equity funds. The fund house's assets under management (AUM) stood at around Rs 1 lakh crore, aided by clear execution and support from Canara Bank's wide branch network. The presence of Orix Corporation as a joint promoter adds expertise in investment, product and risk management, the note said.
The brokerage highlighted that the AMC's retail-driven model provides structural stability. Around 87 per cent of its monthly average AUM (MAAUM) as of June 2025 was contributed by retail and HNI investors, offering sticky and granular inflows. About 92 per cent of total AUM is in equity-oriented funds -- roughly 80 per cent in equity and 12 per cent in hybrid schemes -- while 8 per cent of AUM is sourced through Canara Bank. Management aims to keep bank-linked distribution within the 8–12 per cent range.
On the financial side, InCred noted that the AMC's revenue yield stands at 0.39 per cent, relatively lower compared with larger peers, partly due to higher distributor payout ratios. The brokerage cautioned that this could limit scope for higher incentives, while the AMC's concentration in equity schemes may also mean missing out on the rapid growth in passive and ETF products.
Despite these factors, InCred believes the IPO valuation leaves room for upside. At the upper end of the price band of Rs 266 per share, the stock is valued at 28x FY25 earnings, which the brokerage considers fair compared with peer multiples.
Post the IPO, Canara Bank's stake in the AMC will decline from about 51 per cent to 38 per cent, and under the Reserve Bank of India (RBI) norms, the lender will need to further pare its holding to 30 per cent by FY30.
"We believe the company is an attractive bet in the small AMC space and has higher potential to rerate with a slight improvement in scheme performance and yields, given its retail focus and high proportion of equity AUM," InCred Equities said.
InCred Equities has expressed optimism over the upcoming initial public offering (IPO) of Canara Robeco Asset Management Company (AMC), calling it a "modest valuation with high potential." The brokerage highlighted the AMC's strong retail franchise, focus on active equity funds and steady market share as key strengths that could support further growth post listing. The IPO opens for subscription today (October 9) and will close on October 13.
According to InCred, Canara Robeco AMC has maintained a steady market share of around 1.5 per cent as of June 2025, backed by its strategic focus on active equity funds. The fund house's assets under management (AUM) stood at around Rs 1 lakh crore, aided by clear execution and support from Canara Bank's wide branch network. The presence of Orix Corporation as a joint promoter adds expertise in investment, product and risk management, the note said.
The brokerage highlighted that the AMC's retail-driven model provides structural stability. Around 87 per cent of its monthly average AUM (MAAUM) as of June 2025 was contributed by retail and HNI investors, offering sticky and granular inflows. About 92 per cent of total AUM is in equity-oriented funds -- roughly 80 per cent in equity and 12 per cent in hybrid schemes -- while 8 per cent of AUM is sourced through Canara Bank. Management aims to keep bank-linked distribution within the 8–12 per cent range.
On the financial side, InCred noted that the AMC's revenue yield stands at 0.39 per cent, relatively lower compared with larger peers, partly due to higher distributor payout ratios. The brokerage cautioned that this could limit scope for higher incentives, while the AMC's concentration in equity schemes may also mean missing out on the rapid growth in passive and ETF products.
Despite these factors, InCred believes the IPO valuation leaves room for upside. At the upper end of the price band of Rs 266 per share, the stock is valued at 28x FY25 earnings, which the brokerage considers fair compared with peer multiples.
Post the IPO, Canara Bank's stake in the AMC will decline from about 51 per cent to 38 per cent, and under the Reserve Bank of India (RBI) norms, the lender will need to further pare its holding to 30 per cent by FY30.
"We believe the company is an attractive bet in the small AMC space and has higher potential to rerate with a slight improvement in scheme performance and yields, given its retail focus and high proportion of equity AUM," InCred Equities said.