Canara Robeco Asset Management Company Ltd IPO

One of the company's equity schemes and nine of its debt schemes have underperformed relative to their respective benchmark indices over a one calendar year ended June 30, 2025. If our investment schemes underperform, the company's AUM could decrease, negatively impacting our results of operations.

The company's business is subject to extensive regulation, including periodic inspections by the Securities and Exchange Board of India ("SEBI"), and the company's non-compliance with existing regulations or SEBI's observations could expose the company to penalties and restrictions in the business that we can undertake.

Unfavourable market changes and economic downturns may result in customer withdrawals or a decrease in customer transactions, resulting in a decline in the company's assets under management and management fees, which could significantly and negatively influence its revenue from operations, business prospects, financial conditions, and results of operations.

The performance of the company's equity-oriented schemes has a significant impact on the company's assets under management and consequently its revenue from operations. As of June 30, 2025, June 30, 2024, March 31, 2025, March 31, 2024, and March 31, 2023, 91.17%, 92.34%, 91.69%, 91.66% and 88.43% of the company's quarterly average assets under management were from equity-oriented schemes. Underperformance by our equity-oriented schemes may have a disproportionate adverse impact on the company's business and revenue.

As of June 30, 2025 and June 30, 2024 and March 31, 2025, March 31, 2024, and March 31, 2023, 73.45%, 75.82%, 73.63%, 76.24% and 78.04% of the company's monthly average assets under management were generated from third-party distributors. If the company is unable to maintain its existing relationship with the company's third-party distributors or attract new distributors, the company's business, competitiveness, results of operations and financial condition may be adversely impacted.

The company is dependents on several key personnel, including its Key Managerial Personnel and Senior Management as well as the company's investment team, and the loss of or the company's inability to attract or retain such persons could adversely affect its business, financial condition, results of operations and cash flows.

The company has licensed the trademarks "Canara" and "Robeco" from Canara Bank and Robeco Holding, respectively and the termination of the trademark license agreements could adversely impact its business and results of operations. If the company is unable to transition away from these trademarks to new brand(s) within the prescribed timelines, this could prevent marketing and distribution of the company's schemes under these arrangements.

Growth in the company's revenue from operations and profitability depends on the growth in the company's assets under management. The company may not be able to sustain its historical growth in assets under management which may impact the company's revenue from operations and/or profitability.

As of June 30, 2025 and June 30, 2024 and March 31, 2025, March 31, 2024 and March 31, 2023, 62.11%, 61.46%, 61.92%, 61.67%, and 64.74% of our MAAUM were generated from customers located in the Indian states/union territory of Maharashtra, Gujarat, Karnataka, Delhi, and Tamil Nadu. A decrease in the company's AUM from these states/union territory could adversely impact its business and revenue from operations.

Canara Robeco Mutual Fund ("CRMF") has received a show cause cum demand notice ("Notice") dated June 28, 2025 from the Department of Revenue, Goods and Services Tax, Audit-I, Commissionerate, Mumbai, alleging, amongst other things, non-payment of GST. Any adverse outcome in such proceeding could have an adverse effect on business, financial condition and results of operations of CRMF.