Canara Robeco AMC IPO opens today — Should you subscribe to the ₹1,326 crore OFS

Canara Robeco AMC Ltd.'s ₹1,326 crore Initial Public Offering (IPO) opens for subscription on Thursday, October 9. The three-day issue will close for subscription on Monday, October 13.

Ahead of the issue opening for subscription, the company raised ₹397 crore from over 15 anchor investors, including Nippon India MF, Axis MF, SBI MF, among others.

Price band for the IPO has been fixed between ₹253 - ₹266 per share. Investors can bid for one lot of 56 shares, which will entail a minimum investment of ₹14,896, and then bid in multiples of that.

The IPO is a complete Offer For Sale, which means the company will not receive any proceeds from the stake sale.

Canara Bank, classified as a promoter, will be selling 2.59 crore shares, while Orix Corporation Europe, will be selling up to 2.39 crore shares.

At the upper end of the price band, the company will have a market capitalization of ₹5,304 crore.

Amidst the recent rush of IPOs on Dalal Street, should you place your money to work in this issue as well? Here's what the experts said:

Anand Rathi - Subscribe For Long-Term

Canara Robeco AMC's operations are guided by a seasoned management team and supported by robust corporate governance practices, Anand Rathi wrote in its note, adding that it continues to witness steady growth in its Assets Under Management (AUMs) led by individual investors and through SIPs.

At the upper end of the price band, the issue is valued at 27.8 times price-to-earnings for financial year 2025.

Anand Rathi believes that the IPO is "fully priced" and therefore as a "subscribe for long-term" rating on the IPO.

InCred Equities - Sees Higher Re-Rating Potential

Canara Robeco AMC focuses on active equity funds, which helped sustain its market share at 1.5% as of June this year, InCred's note stated. Nearly 87% of its Monthly Average Assets Under Management (MAAUM) is through retail investors, which is in-line with the management's long-term investment approach.

At the upper end of the price band, InCred sees a higher re-rating potential compared to other PSU players for Canara Robeco AMC, given its retail-focused approach.

The brokerage further said that Canara Robeco AMC is an attractive bet in the small AMC space and has a higher potential to re-rate with a slight improvement in the performance of its scheme and yields.

Gurmeet Chadha - Prefer Other Peers At This Price

"While AMC business itself is very asset light but you have enough options in visiting space which are doing better and probably at same rate, so better growth rates. So in terms of pure growth, my sense is the top ones are better and there are some larger ones which are still reasonable. I would prefer a larger play in AMCs where the AUM is large, there's a good mix of equity debt, less cyclicality, less prone to too many mark to market changes and more retail base. So I would go with Nippon and Birla at these valuations, Gurmeet Chadha of Complete Circle Wealth Solutions told CNBC-TV18 on Wednesday.

Sneha Poddar - Valuations Are Stretched

"Canara Bank, given its wide network, obviously it stands to benefit both in case of the insurance business and the AMC business. In fact, in the AMC business, they are doing well and the AUM has grown rapidly for the company. And the only concern which I find with regards to the AMC business is the valuation, which looks a little stretched. But given the kind of the presence that they have built in a short span of time, it is quite commendable," Sneha Poddar of Motilal Oswal said.