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News Topical, Digital Desk : Canara Bank's subsidiary Canara Robeco Asset Management Company has received approval from market regulator SEBI to launch its initial public offering (IPO). India's second oldest asset management company received SEBI's final observations on its draft papers on September 10, paving the way for launching the IPO within the next one year. "Canara Robeco AMC has received final observations from SEBI vide letter dated September 10 and has thereby been granted permission to file the Red Herring Prospectus (RHP)," Canara Bank told the exchange.
After this approval, AMC can file its RHP with the Registrar of Companies and raise funds through IPO. Canara Robeco AMC had filed preliminary papers for IPO with SEBI on April 24 this year.
Offer-for-sale of 4.98 crore shares This IPO consists entirely of an offer-for-sale (OFS) of 4.98 crore shares, which will be sold by the promoters. This means that the entire amount raised from the IPO will go to the selling shareholders and AMC will not get any funds from this IPO. Its main objective is to do OFS and list the company on the stock exchange. Canara Bank and foreign promoter ORIX Corporation Europe NV have 51 per cent and 49 per cent shares in AMC. In this IPO, under OFS, Canara Bank will sell 2.59 crore shares and ORIX will sell 2.39 crore shares. About the Company The AMC was established in 1993 as Canbank Investment Management Services to manage the assets of Canbank Mutual Fund, which was wholly owned by Canara Bank. In 2007, the bank sold its 49% stake in the company to ORIX Corporation Europe NV and since then the company has been renamed as Canara Robeco Asset Management Company. The merchant bankers managing the Canara Robeco AMC IPO are SBI Capital Markets, Axis Capital and JM Financial.
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