Canara Robeco AMC shares makes a muted D-st debut; stock list at 5% premium

Shares of Canara Robeco Asset Management Company made a decent Dalal Street debut on Thursday, October 16 as the mutual fund player settled at Rs 280.25 on both BSE and NSE, a premium of 5.36 per cent over its issue price of Rs 266. Investors made a profit of Rs 798 on each lot worth Rs 14,896.

Listing on Canara Robeco Asset Management Company (AMC) has been slightly below the expectations. Ahead of its listing, Canara Robeco AMC was commanding a grey market premium (GMP) of Rs 20-22 the unofficial market, suggesting a listing pop of nearly 8 per cent for the investors.

The IPO of Canara Robeco Asset Management Company was open for subscription between October 09-13. It had offered its shares in the price band of Rs 253-266 per share with a lot size of 56 shares. It raised a total of Rs 1,326.13 crore from its IPO, which was entirely a fresh share sale of 4,98,54,357 equity shares.

The issue was overall subscribed 9.74 times, fetching more than 4.30 lakh applications, attracting bids over Rs 9,000 crore. The portion for qualified-institutional bidders (QIBs) was subscribed 25.82 times, while the non-institutional investors (NIIs) quota was booked 6.45 times. The allocations for retail investors was subscribed 1.91 times.

Incorporated in 1993, Mumbai-based Canara Robeco Asset Management Company (CRAMC) is an asset management firm in India, serving as the investment manager for Canara Robeco Mutual Fund, offering a diverse range of investment options, including equity, debt, and hybrid schemes. It operates as a joint venture between Canara Bank and Orix Corporation Europe NV.

Brokerage firms were mostly positive on the issue, suggesting it to subscribe for long-term. JM Financial, SBI Capital Markets and Axis Capital served as the book running lead managers for the Canara Robeco Asset Management Company IPO and MUFG Intime India was the registrar of the issue.