Latest news with #CanaraRobecoAssetManagementCompany
Mint
29-05-2025
- Business
- Mint
Canara Rebeco AMC's Shridatta Bhandwaldar expects market consolidation ahead, remains bullish on these 2 sectors
Shridatta Bhandwaldar, Head Equities, Canara Robeco Asset Management Company, believes that the ongoing earnings season signals recovery to double-digit growth in FY26 and FY27. However, he believes, amid lack of valuation comfort, the Indian stock market is likely to undergo consolidation. He is bullish on two sectors -- consumer discretionary and financials -- over the next few years. Edited excerpts: Some of the global macro and domestic geopolitical situations have turned relatively more benign in the last few weeks. Indian macroeconomic environment has been good for some time now with low inflation, low leverage and controlled current account deficit. Cyclical challenge is of the corporate earnings growth (Nifty), which has slowed down in FY25 to high single digits from a healthy 20+% growth in FY24. This slowdown was an outcome of meaningful public capex deceleration accompanied by a relatively tighter domestic liquidity environment over the past 4 quarters. These factors are reversing gradually – 1) Domestic liquidity has moved from deficit into surplus in the last few quarters, 2) The public capex has normalised back to budgeted numbers, 3) There is a pivot towards mass consumption in state and central budgets and 4) Further improvement in Private capex / Real estate, supported by a healthy banking system remains a reasonable expectation. This is already visible in Q4FY25 corporate earnings season, where the earnings have turned out better than estimated, indicating possible cyclical recovery to double-digit earnings growth in FY26E/27E. However, with fair valuations in large caps and above-average valuations in mid/small caps, we expect the market to undergo consolidation as cyclical recovery plays out and then starts rolling over based on earnings growth outcomes. Given that the strategy has a tilt towards predominantly mid-caps, we are focused on medium-term risk-adjusted returns. Given India's diverse listed space and strong underlying nominal GDP growth rate, we believe that there are enough well-run and scalable businesses available from a medium-term to long-term perspective. We are focused on identifying superior earnings growth profile companies for the Canara Robeco Emerging Equities portfolio on a bottom-up basis, and we believe that there is enough scope to do that despite broader valuation challenges in the mid-cap space. We tend to assess governance-related risks based on due diligence of the past track record, which is embedded in our investment process. We evaluate financials and the past track record of the management to assess both the ability to execute business better than peers and the intent to share outcomes with the minority shareholders. Liquidity risks are managed by having a limit and control structure on illiquidity criteria on mid and small caps. We are constructive on Consumer Discretionary and Financials from the next 3-5 year view. Under-allocation to equity at a younger age tends to be a common mistake. This is invariably followed by an inability to re-look at asset allocation when the margin of safety erodes in parts of the owned portfolio. Seeking professional advice on investment decisions and asset allocation at the initial stage of investment journey, can help to avoid such mistakes and contribute towards long term wealth creation. We can't talk about stocks, unfortunately. But sectors like Industrials, Hospitals, Hotels, Telecom and Aviation are good examples over the last 3 years of our bottom-up stock selection strategy to understand differentiated earnings growth leading to sizable contribution to alpha. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
27-04-2025
- Business
- Economic Times
Canara Bank to mobilise around Rs 500 crore via Canara Robeco IPO
Kolkata: Canara Bank is likely to garner a little over Rs 500 crore from the partial sale of its mutual fund subsidiary Canara Robeco Asset Management Company, people aware of the matter will help the bank boost its capital adequacy ratio and continue advances growth and branch expansion without fresh equity raising. Canara is likely to offload 13% holding in the asset management company , which last week filed a draft red herring prospectus with market regulator Securities & Exchange Board India seeking permission for an initial public offer to sell 49.8 million shares. The IPO consists only of an offer for sale by promoters -- Canara Bank and Orix Corporation Europe NV -- while there will be no fresh issue of shares. "The bank would like to raise a little more than Rs 500 crore from the IPO," the person cited above said. The bank did not comment on the Bank is likely to have grown its advances by about 10% year-on-year at the end of March. It is also expanding its branch network by opening 150-200 branches every year. Its capital adequacy ratio stood at 16.44% at the end of December. The ratio is likely to have increased as it would plough back profit into reserves. The bank would announce its fourth quarter earnings on May IPO proceeds would get added to capital adequacy calculation after the conclusion of the exercise. Canara Bank holds 51% in the asset management company while its joint venture partner Orix holds 49%. Orix would offload 12%. The AMC was incorporated in 1993 as Canbank Investment Management Services Limited to manage the assets of Canbank Mutual Fund. Orix, which was previously known as Robeco Groep NV, came in as joint venture partner in 2007. The company grew at a CAGR of 34.75% between March 31, 2022, to March 31, 2024, in comparison to industry growth of 18.8%, according to the Crisil report. The company's likely IPO size could be around Rs 1000 crore. The final size will be disclosed after the price discovery, which will be done through a book-building process. After this, Canara Bank would also monetise its holding in Canara HSBC Life Insurance where it holds 51%. It would sell 14.5% stake in it through the proposed IPO of the insurance company.
New Indian Express
26-04-2025
- Business
- New Indian Express
Canara Robeco AMC files for Rs 1,000 crore IPO
MUMBAI: Canara Robeco Asset Management Company, the second oldest fund house in the country, has filed preliminary papers with the markets watchdog Sebi to raise funds via initial public offering which will only be an offer for sale without any fresh issue, from which it is likely to raise Rs 800-1,000 crore. The final size of the issue will be disclosed after the price discovery but investment banking sources told TNIE that they expect the issue size to be in the Rs 800 crore to Rs 1,000 crore range. According to draft IPO papers, the OFS will see promoters -- Canara Bank and Orix Corporation Europe NV--offloading 4.98 crore shares, with no fresh issue component and therefore, no money will come to the company. Of this, the state-run Canara Bank plans to sell 2.59 crore shares, and the Japanese conglomerate Orix Corporation-owned subsidiary Orix Corporation NV (previously known as Robeco Groep) will be selling the remainder 2.39 crore in 1993, Canara Robeco AMC is a joint venture company between Canara Bank and Orix Corporation Europe with a 51:49 per cent shareholding ratio. As of December 2024, it managed 25 schemes comprising 12 equity schemes, 10 debt schemes and three hybrid schemes with a quarterly average asset under management of Rs 1,08,366 crore. Profit for the nine months period to December 2024 stood at Rs 149 crore, growing 40.3 per cent from a revenue of Rs 302.9 crore, which rose 35.9 per cent -on-year. The numbers for FY24 stood at Rs 151 crore up 91.1 per cent and Rs 318 crore up 55.5 per cent, respectively.
Time of India
25-04-2025
- Business
- Time of India
Canara Robeco files draft papers with Sebi for IPO. Issue to be OFS
Canara Robeco Asset Management Company has filed draft papers with market regulator Securities and Exchange Board of India (Sebi) for an initial public offering ( IPO ) which will be an offer for sale ( OFS ). Canara Bank and ORIX Corporation Europe N.V, which are promoters of the company will collectively offer up to 49,854,357 equity shares, In this, Canara Bank will offer up to 25,924,266 equity Shares while ORIX will sell up to 23,930,091 equity shares, the Draft Red Herring Prospectus (DRHP) said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like เทรดทองCFDs กับโบรกเกอร์ที่เชื่อถือได้ | เรียนรู้เพิ่มเติม IC Markets สมัคร Undo Canara Robeco Asset Management Company's primary activities include managing mutual funds and providing investment advice on Indian equities. As of December 31, 2024, the company managed 25 schemes comprising 12 equity schemes, 10 debt schemes and three hybrid schemes with a quarterly average assets under management (AUM) of Rs 1,08,366 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. Canara Robeco AMC has witnessed a growth in its QAAUM, growing at a CAGR of 34.75% between March 31, 2022, to March 31, 2024, compared to industry growth of 18.8%, the DRHP said citing a CRISIL report. The same report adds that the company had the third highest share of equity (including equity-oriented hybrid) AUM as of and compared to the top 10 AMCs in India, had the highest share of equity-oriented AUM as of December 31, 2024. Live Events The equity shares are proposed to be listed on the BSE and NSE. SBI Capital Markets Limited, Axis Capital Limited and JM Financial Limited are the Book Running Lead Managers to the issue. MUFG Intime India Private Limited (Formerly Link Intime India Private Limited) will be the registrar for the public issue.
Mint
25-04-2025
- Business
- Mint
Canara Bank sets board meeting date to declare Q4 results 2025, dividend. Details here
Canara Bank, a state-owned lender, is set to announce its financial results for the fourth quarter and fiscal year ended March 31, 2025, on Thursday, May 8, 2025. During the meeting, the bank will also consider a dividend payout. "...the Board Meeting of the Bank is scheduled to be held on Thursday, May 8, 2025, at its Head Office in Bengaluru, inter alia to: (i) consider and approve the Audited Standalone & Consolidated Financial Results of the Bank for the Fourth Quarter / Financial Year ended March 31, 2025; and (ii) recommend consideration of dividend for the financial year 2024–25, if any, subject to the approval of shareholders at the Annual General Meeting," the bank stated in its regulatory filing today. Further, the lender informed that the trading window for directors, designated persons, their relatives, and connected persons has been closed from April 1, 2025, and will remain closed until 48 hours after the declaration of the financial results for the fourth quarter and financial year ended March 31, 2025. In other developments, Canara Robeco Asset Management Company has filed draft papers for an initial public offering, with existing shareholders looking to offload stakes at a time when the Indian IPO market is showing signs of a slowdown, Reuters reported. Canara Robeco is a joint venture between state-owned Canara Bank and Netherlands-based ORIX Corporation Europe, a subsidiary of Japan's ORIX Corporation Canara Bank shares continued their upward trajectory for the second consecutive month in April, rising 8.46%, building on a 10% surge in March. Prior to this recovery, the stock had witnessed a steady decline from May 2024 to February 2025, ending each of those months in the red and resulting in a 35% correction in value. Despite the sharp rebound in the last couple of months, the stock is still down by 26% from its June 2024 high of ₹ 128.90 apiece. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions. First Published: 25 Apr 2025, 06:06 PM IST
