Shares of Canara Bank jumped over 3 percent in early trade on December 28 after the company gave an in-principle nod to initiate the listing process of its mutual fund subsidiary, Canara Robeco Asset Management Company through an initial public offering.
The company will provide further details of the listing in the due course, the lender stated in an exchange filing.
At 10.23 am, shares of Canara Bank were trading 2.2 percent higher at Rs 441.95 on the National Stock Exchange.
The news also triggered a spike in volumes in the counter as 77 lakh shares changed hands, higher than the one-month daily traded average of 75 lakh shares. Meanwhile, shares of Canara Bank have also surged 33 percent year-to-date.
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The lender's mutual fund business was established in 1993 as Canbank Mutual Fund and was later renamed in 2007 as Robeco Mutual Fund after Canara Bank entered into a partnership with Dutch asset manager Robeco Group.
As of November 2023, Canara Robeco Mutual Fund managed assets worth Rs 78,398.51 crore.
Post its listing, Canara Robeco Asset Management Company will be the fifth mutual fund company to debut on bourses in India following the footsteps of HDFC AMC, Nippon Life India AMC, UTI Asset Management Company, and Aditya Birla Sun Life AMC.
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