Canara Robeco Asset Management IPO fully subscribed on final day

Asset manager Canara Robeco’s ₹1,326-crore initial public offering (IPO) was fully subscribed on Monday, October 13, the final day of its three-day bidding process, driven by retail individual investors.

The maiden public issue of the company received bids for nearly 9.67 crore shares as against the offer size of 3.48 crore shares, according to data on NSE at 2.20 pm.

Retail and Non Institutional Investors (NII) have fully booked their reserved portions, subscribing them 1.30 times and 2.16 times so far. Qualified Institutional Buyers (QIB) have booked 5.80 times the portion reserved for them.

The decent investor interest comes despite sharp fall in grey market estimates. In the unlisted market, shares of Canara Robeco AMC were trading flat at the IPO price with zero grey market premium.

However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

The company raised a little over ₹750 crore from anchor investors, just a day before its initial share-sale opened for public subscription.

The anchor book received participation from institutional investors including ICICI Prudential Mutual Fund (MF), HDFC MF, DSP MF, WhiteOak Capital, Mirae Asset MF, Allianz Global Investors Fund, Amundi Funds, Matthews India Fund, Tata MF, Motilal Oswal MF and Societe Generale.

The company sold its shares in a fixed price band of ₹100 to ₹106 per share for its IPO, targeting for a valuation of about ₹10,000 crore at the upper end.

Canara HSBC Life Insurance Company is a joint venture promoted by Canara Bank, which holds a 51% stake, and HSBC Group’s HSBC Insurance (Asia Pacific) Holdings, which owns 26%.

Canara HSBC Life’s IPO is a complete offer for sale (OFS) of 23.75 crore equity shares by promoters and an investor.

Under the OFS, Canara Bank will sell 13.77 crore equity shares, HSBC Insurance (Asia-Pacific) Holdings Ltd will offload 47.5 lakh shares and Punjab National Bank plans to divest 9.5 crore equity shares.

Since it’s an OFS, the company will not receive any proceeds from the public issue instead funds will go to selling shareholders.

Incorporated in 2007, Canara HSBC Life has grown into a prominent bank led private player in the Indian life insurance sector.

Canara HSBC Life is expected to make its stock market debut on October 17.

In December 2024, Canara Bank announced that it got Reserve Bank of India's approval for a proposal to divest the bank's stake in life insurance and mutual fund ventures.Read about our editorial guidelines and ethics policy