New Delhi, Apr 25 (PTI) Canara Robeco Asset Management Company has filed preliminary papers with capital markets regulator Sebi for floating an initial public offer (IPO).

The asset management company filed draft papers at a time when the IPO market is staring at a slowdown owing to volatility in the equity market.

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The IPO is completely an offer for sale (OFS) of 4.98 crore equity shares by promoters with no fresh issue component, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

Under the OFS, promoters -- Canara Bank and ORIX Corporation Europe N.V. (previously known as Robeco Groep N.V.) -- will offload 2.59 crore and 2.39 crore shares, respectively.

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Canara Bank owns 51 per cent stake in Canara Robeco Asset Management Company while Orix Corporation holds the remaining stake in the AMC.

Since the IPO is entirely an OFS, the company will not receive any funds from the public issue, and the proceeds will go to the selling shareholders.

Canara Robeco Asset Management Company is the country's second-oldest asset manager. The state-run lender had floated the company in 1993, partnering with Robeco, now part of Orix, in 2007.

Its primary activities include managing mutual funds and providing investment advice on Indian equities. As of December 31, 2024, it manages 25 schemes comprising 12 equity schemes, 10 debt schemes and three hybrid schemes with a quarterly average assets under management (AUM) of Rs 1.08 lakh crore.

The company has a multi-channel sales and distribution network that allows it to offer products and services to its customers. This network includes third-party distributors, and sales made through its branches, and digital platforms.

SBI Capital Markets, Axis Capital and JM Financial are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and NSE.

In December 2024, Canara Bank announced receiving the Reserve Bank of India's approval for a proposal to divest the bank's stake in life insurance and mutual fund ventures.

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