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Canara Bank will sell a 13% stake in arm Canara Robeco Mutual Fund through an initial public offering of shares, and the lender has received the board’s consent for the same.
This is, however, subject to approvals of the Reserve Bank of India, the finance ministry, and the government, Canara Bank said in an exchange filing.
In December last year, Canara Bank board gave in-principle approval to initiate the process of listing the asset management arm.
Incorporated in 1993, Canara Robeco MF was earlier known as Canbank Mutual Fund. In 2007, Canara Bank partnered the Robeco Group through a joint venture and the mutual fund was renamed as Canara Robeco Mutual Fund.
If Canara Robeco AMC gets listed, it will be the fifth listed asset management company in India.
Currently, Aditya Birla Sun Life AMC, HDFC Asset Management, Nippon Life India Asset Management, and UTI Asset Management are the four listed mutual funds in India.
As of December 2023, Canara Robeco MF had Rs 83,929 crore worth of assets under management, which was 1.6% of the mutual fund industry’s AUM.
On Thursday, shares of Canara Bank ended 3% up on the BSE at Rs 581.10.
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