Canara Bank’s board has 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).

CRAMC is Canara Bank’s joint venture with Orix Corporation, Japan, with the bank holding a 51 per cent stake.

The public sector bank will dilute 13 per cent of its stake by listing CRAMC on the stock exchange via IPO.

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

The MF 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. It gave an interim dividend of 25 per cent and also declared final dividend of 25 per cent for FY23.

Currently, 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.