Canara Bank to lift 13 percent stake of subsidiary unit

As of now, six AMCs – HDFC AMC, UTI AMC, Aditya Birla Sun Life AMC, Nippon Life AMC, Shriram AMC, and IL&FS Mutual Fund (IDF) – are listed on the exchanges.

Canara Bank to lift 13 percent stake of subsidiary unit

The board members of Canara Bank have accorded approval for initiating the process of diluting a part of its stake by listing its subsidiary, Canara Robeco Asset Management Company Ltd (CRAMC), on the stock exchange through an initial public offering (IPO).

The CRAMC consists of  Canara Bank’s joint venture with Orix Corporation, Japan, with the bank holding a 51 percent stake. The public sector bank has decided to dilute 13 percent of its stake by listing CRAMC on the stock exchange via IPO as per exchange filing.

Read Also : HCL Technologies Q4 earnings, Net profit rises to Rs 3,995 crore, board announces dividend

CRAMC is a JV, which was formed in 2007 by divesting a 49 percent stake held by the Bank in Can Bank Mutual Fund in favor of Robeco Group N V (now Orix Corporation, Japan).

The Mutual Fund unit had average assets under management of ?79,364.55 crore in the October-December 2023 quarter. The company registered a net profit of ?78.85 crore in FY23 while giving out an interim dividend of 25 percent and also declared a final dividend of 25 percent for FY23.

Read Also : SBI Card Q4 FY24 Revenue Rises 14 percent to Rs 4,475, PAT Grows 11 percent to Rs 662 Crore