Bengaluru-based public sector lender Canara Bank has said its board has given in-principle approval to initiate the process of launching an initial public offering (IPO) for its mutual fund subsidiary, Canara Robeco Asset Management Company.

“We wish to inform you that Canara Bank has in principle approved to initiate the process of listing its mutual fund subsidiary, Canara Robeco Asset Management Company Ltd, in the stock exchanges by way of IPO, subject to following the due diligence, laid down procedures, opportune time, regulatory approvals etc.,” the state-run lender said in an exchange filing.

When listed, this will mark the fifth mutual fund company to list in India. The others are HDFC AMC, Nippon Life India AMC, UTI Asset Management Company and Aditya Birla Sun Life AMC.

The modalities of listing will be decided in due course, Canara Bank said.

"The bank will make further announcements of all material developments with regard to the same, as and when required, as per applicable regulations," it added.

Founded in 1993 as Canbank Mutual Fund, it was rebranded in 2007 as Canara Robeco Mutual Fund after Canara Bank entered into a partnership with Dutch asset manager Robeco Group.

As of November 2023, Canara Robeco Mutual Fund manages assets worth Rs 78,398.51 crore.

Canara Bank holds a majority 51% stake in the mutual fund subsidiary. The rest 49% is held by Orix Corporation Europe.