State-owned Canara Bank has granted in-principle approval to kickstart the process of listing its mutual fund subsidiary, Canara Robeco Asset Management Company Ltd, on stock exchanges through an initial public offering (IPO). As of December 26, Canara Bank confirmed this strategic move, signaling a significant development in the financial landscape.

Canara Robeco Asset Management Company Ltd, India’s second oldest asset manager, traces its roots back to 1993 when it operated under the name Canbank Mutual Fund. In 2007, a pivotal joint venture was established between Canara Bank and Robeco Group, leading to the rebranding of the mutual fund as Canara Robeco Mutual Fund.

“We wish to inform you that Canara Bank has, in principle, approved to initiate the process of listing its Mutual Fund Subsidiary Canara Robeco Asset Management Company Ltd, in the Stock Exchanges by way of an Initial Public Offer (IPO),” stated Canara Bank in a regulatory filing. The bank emphasized that the IPO process is contingent on fulfilling due diligence, adhering to prescribed procedures, choosing an opportune time, securing regulatory approvals, among other considerations.

The bank outlined that the specifics of the listing modalities will be determined in due course. Further announcements regarding material developments related to the IPO will be made by the bank in accordance with applicable regulations.

Shares of Canara Bank Ltd reflected positive market sentiment, concluding at ₹432.40, marking a notable increase of ₹7.35, equivalent to 1.73%, on the BSE.

This move aligns with Canara Bank’s strategic vision, tapping into the potential of the capital market through the IPO route for its mutual fund subsidiary. The development signifies a dynamic step in the evolution of Canara Robeco Asset Management Company Ltd, presenting an opportunity for investors to participate in its growth story. As the process unfolds, stakeholders and the market at large will await further details on the IPO, including the timing and valuation parameters, to gauge the potential impact on the financial landscape.

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