Canara Robeco Asset Management Company Ltd IPO | News | Overview | Verdict

IPO closes on 13 Oct'25

Canara Robeco Asset Management Company Ltd

Minimum Investment

₹ 14,896 / 56 shares

Our Verdict:

Canara Robeco Asset Management Company Ltd (CRAMC) has swiftly transformed from a modest fund house to one of the fastest-growing players in India’s asset management sector. As of June 2025, it manages an impressive Rs 1.11 lakh crore in Quarterly Average AUM (QAAUM).
The mutual fund industry in India has experienced remarkable growth over the last decade and this trend is expected to continue, driven by an increasing number of retail investors. Notably, FY24 saw an impressive 34% growth and this momentum carried into FY25 with a strong YoY growth of 25%.
This growth creates a significant opportunity for smaller yet agile players like CRAMC, which is predominantly equity-focused, with 91% of its AUM invested in equity-oriented schemes.
CRAMC stands out in terms of profitability as well, with higher revenue yields and return on equity (ROE) compared to its peers. This is primarily due to its favourable asset mix, heavily weighted towards equities. Over FY23–25, CRAMC has outpaced some of its listed peers, achieving a revenue CAGR of 40% and a net profit CAGR of 55%.
In terms of valuation, the IPO seems reasonably priced at a P/E multiple of around 28x. Given the strong industry tailwinds, CRAMC's solid track record and its fair valuation, long-term investors may consider subscribing to the issue.

About the company

Founded in

2 Mar'93

Managing director

Rajnish Narula

CRAMC is India’s second-oldest asset management company, with a strong presence in the industry. As of June 2025, the company manages an impressive portfolio of 26 mutual fund schemes—comprising 12 equity, 10 debt and 4 hybrid funds—with a quarterly average AUM of Rs 1.11 lakh crore.
A key strength of CRAMC is its retail investor base, which accounts for nearly 87% of its monthly average AUM. This is supported by a substantial network of 50 lakh individual folios, making CRAMC one of the most retail-focused AMCs in the country.
CRAMC’s primary revenue streams include: Management Fees, Advisory and Portfolio Management Fees, Treasury Income and Ancillary Operations and Distribution Network Revenue.

STRENGTHS

Multi-Channel Distribution: As of June 30, 2025, CRAMC boasts a robust pan-India geographical presence, directly serving customers in over 23 cities across 14 states and 2 union territories. The firm operates through 25 branches, supported by a dedicated sales team of 142 employees and a customer services team of 52.
Consistent AUM Growth: CRAMC has demonstrated strong growth in Assets Under Management (AUM), increasing from Rs 62,485 crore in FY23 to Rs 1,03,344 crore in FY25, representing a CAGR of more than 28%.
Robust Financial Performance: Between FY23 and FY25, CRAMC achieved impressive financial results, with operating revenue growing at a CAGR of 40%, while net profit surged by 55%.
Margin Expansion: CRAMC has successfully improved profitability, with net margin expanding from 38.61% in FY23 to 47.24% in FY25, and further reaching 50.37% by June 30, 2025.
Superior Asset Mix: CRAMC is predominantly equity-focused, with 91% of its AUM invested in equity-oriented schemes— the highest equity allocation among its peers. This equity-heavy composition is advantageous, as equity assets typically generate higher management fees (TER) compared to debt schemes. Additionally, the firm's strong equity tilt is reflected in its investor base, with 87% of total AUM coming from retail and HNI investors. This contributes to greater stability, as individual investor flows tend to be less volatile than institutional money.

RISK FACTORS

Underperformance of Schemes: As of June 30, 2025, 1 equity scheme and 9 debt schemes underperformed relative to their respective benchmark indices over the past calendar year. Continued underperformance could lead to a decline in AUM, negatively impacting the firm’s financial performance and investor confidence.
Dependence on Equity Schemes: A significant portion of CRAMC's AUM and revenue is derived from its equity-oriented schemes. As of June 30, 2025 and FY25, nearly 91% of the quarterly average AUM came from these schemes. Given their volatility, any downturn in the equity markets or underperformance in these funds could disproportionately affect the company's overall business and revenue.
Dependence on Third-Party Distributors: A substantial portion of CRAMC's AUM—73.45% as of June 30, 2025 and 73.63% in FY25—is generated through third-party distributors. If the company faces challenges in maintaining or expanding its distributor network, it could adversely affect its competitiveness and business performance.

Financials

All Values are in Cr.

Issue details

Issue type

Mainstream

Issue size

₹ 1,326.13 crore

Fresh Issue

₹ -

OFS

₹ 1,326.13 crore

Price range

₹ 253 - 266

Lot size

56 shares

Issue Objective

This issue is entirely an Offer for Sale (OFS), meaning the company itself will not receive any funds from the proceeds. Instead, all proceeds will go directly to the selling shareholders.

Dates

Bidding open

9 Oct'25

Bidding close

13 Oct'25

Allotment date

14 Oct'25

Refund date

15 Oct'25

Listing

16 Oct'25

IPO Reservations

Qualified institutional buyers

<50%

Non-institutional investors

>15%

Retail individual investors

>35%

Read the Offer Document

This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.

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