Canara Robeco Shares Surge 13% in Stellar NSE Debut

Indian asset manager Canara Robeco saw its shares jump 13% on their trading debut on the National Stock Exchange on Thursday, valuing the company at approximately 60 billion rupees ($681.42 million). The Mumbai-based firm’s stock climbed to 302 rupees, well above its issue price of 266 rupees, following a nearly $150 million IPO that was oversubscribed about tenfold earlier this week. The listing comes amid a busy period in India’s primary market, which also saw the debut of Tata Capital and LG Electronics India.

The IPO witnessed strong demand from institutional investors, with qualified institutional buyers subscribing 26 times their reserved quota, while the retail portion was subscribed twice over. Brokerage firms PL Capital and InCred Equities have expressed confidence in Canara Robeco’s growth potential, citing strong retail inflows into mutual funds, a focus on active equity funds, and room for earnings expansion. PL Capital initiated coverage on the stock with a ‘buy’ rating and set a price target of 320 rupees per share, implying a 20.3% upside from the issue price.

Canara Robeco, a joint venture between Canara Bank and Japan’s ORIX, is the first Indian asset manager to go public this year. Despite being the smallest among its listed peers—such as HDFC AMC, Nippon Life India AMC, and UTI AMC—the over-30-year-old firm stands out with a portfolio largely focused on equities and a predominantly retail investor base. ICICI Prudential AMC is also expected to enter the public markets later this year.

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