Canara Robeco AMC shares plummeted by up to 11% on Tuesday. For the first time since its listing, the company released its September quarter results, showing an 11% decline in revenue to ₹107.7 crore and operating margin falling from 68% to 63%. Increased expenses and weak results led to significant selling by investors.
Canara Robeco AMC Share Price: Shares of the recently listed Canara Robeco Asset Management Company fell by up to 11% on Tuesday, reaching a low of ₹311.20. The company released its September quarter results on Monday, which showed an 11% decline in revenue to ₹107.7 crore, while the operating profit margin slipped from 68% to 63%. Rising expenses and weak profits shook investor confidence. This decline occurred just 12 days after the company's listing.
Market Shaken by 11% Decline
On BSE, Canara Robeco AMC shares came under heavy pressure during early trading on Tuesday. In the morning session, the stock tumbled by 11.23% to ₹311.20. After a slight recovery later, it was trading at ₹327.75, showing a 6.50% decline.
This decline comes at a time when the company has been listed for barely 12 days. The company's shares were listed on October 16 at an issue price of ₹266 and had performed well in the initial days.
Quarterly Results Halt Momentum
The company presented its September 2025 quarter results after market close on Monday. In this quarter, the company's revenue declined by 11% quarter-on-quarter to ₹107.7 crore. Meanwhile, the operating profit margin slipped from 68% to 63%.
During this period, the company had to bear the impact of rising expenses. Analysts believe that the increase in new initiatives and operating costs has affected the company's profitability.
Company History
Canara Robeco AMC began in 1987 under the name Canbank Mutual Fund. Later, in 1993, it emerged as Canara Robeco Mutual Fund. The company operates as a joint partnership between Canara Bank and Orix Corporation Europe N.V.
The partnership between the two companies began in 2007. This joint venture has established a b presence in the Indian mutual fund market over the past few years.
Canara Bank acquired these shares at an average price of ₹2.01 per share, and Orix Corporation Europe at ₹12.87 per share.
Good Response Post-Listing
The company's shares were listed on both BSE and NSE exchanges on October 16 at an issue price of ₹266. On the listing day itself, the shares closed at ₹280.25 with a 5% premium.
Following this, investor interest rapidly increased over the next few days, and on October 27, the shares reached a record high of ₹353.55. Thus, in just 11 days of listing, the shares surged by 26.16%, yielding approximately 33% profit for IPO investors.
Mood Changed After Results
However, the mood completely changed after the quarterly results. Weak revenue and declining profit margins raised concerns among investors. Consequently, heavy selling was observed on Tuesday.
Many market experts believe that these results, released soon after the company's listing, did not meet investor expectations. The market had hoped that the company's figures would also be better after the recent rally, but this was not the case.
