Canara Bank share price rallied over 3% on Tuesday, rising for the second consecutive session amid strong buying interest. Canara Bank shares surged as much as 3.27% to ₹124.45 apiece on the BSE.
The uptrend in Canara Bank shares follows the announcement that the bank’s subsidiary, Canara Robeco Asset Management Company Ltd, has received approval from the Securities and Exchange Board of India (SEBI) for its Updated Draft Red Herring Prospectus (UDRHP).
The regulatory clearance for Canara Robeco AMC’s updated DRHP marks a significant step towards the company’s planned initial public offering (IPO), enabling it to advance to the next phase of the capital-raising process.
According to the DRHP, Canara Robeco AMC IPO will be entirely an offer-for-sale (OFS) of 4.98 crore equity shares by existing promoters. Canara Bank and its foreign partner, ORIX Corporation Europe NV, currently hold 51% and 49% stakes in the asset manager, respectively. They plan to sell 2.59 crore shares and 2.39 crore shares via the OFS.
Since the IPO is a pure OFS, the proceeds will accrue solely to the selling shareholders. The AMC itself will not receive any funds from the issue.
Commenting on the development, Anuj Gupta, Director at Ya Wealth, said, “As mentioned in the DRHP of Canara Robeco Asset Management Company, the upcoming IPO is entirely an OFS. This means the net proceeds of the Canara Robeco Asset Management Company IPO will not be reflected in the balance sheet of the Canara Bank subsidiary, but instead in the balance sheet of the PSU bank, which is offloading its shareholding through this IPO. This is why Canara Bank share price is rising today.”
Technical Outlook
Canara Bank share price has registered a strong bullish breakout above its consolidation zone, with ₹124 acting as a key trigger level, noted Riyank Arora, Technical Analyst, Mehta Equities Ltd.
“Canara Bank stock is showing robust price action supported by heavy volumes, confirming strong market participation. Momentum indicators such as RSI are trending upward, reflecting fresh buying strength. Sustaining above ₹124 could open the way for higher levels in the near term, keeping the outlook firmly positive,” Arora said.
Canara Bank Share Price Performance
Canara Bank share price has rallied 20% in one month and 40% in the past six months. The PSU bank stock has gained 11% in one year and has delivered multibagger returns of 600% in five years.
At 12:55 PM, Canara Bank share price was trading 2.90% higher at ₹124.00 apiece on the BSE.
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