Shares of Canara Bank were trading 2% higher on 28 December after the company announced that its mutual fund (MF) arm, Canara Robeco Asset Management Company Ltd, received approval for IPO (initial public offering).

In its regulatory filing, the company said, “The modalities of listing will be decided in due course. The bank will make further announcements of all material developments with regard to the same, as and when required, as per applicable regulations.”

After listing, Canara Robeco Asset Management Company Ltd will become the fifth mutual fund company to make its debut on the Indian stock exchanges, following the footsteps of Nippon Life India AMC, HDFC AMC, UTI Asset Management Company, and Aditya Birla Sun Life AMC.

Canara Robeco Asset Management Company Ltd was formerly known as Canbank Mutual Fund. However, the name was changed after the company partnered up with Robeco Group by way of Joint venture back in 2007 and was renamed Canara Robeco Asset Management Company Ltd.

In its quarterly report for July-September, the company reported a 43% year-on-year increase in its net profit to Rs 3,606 crore for the quarter from Rs 2,525 crore reported in the same quarter last year.

The revenue from the operation of the bank stood at Rs 8,903 crore for the quarter, marking a 43.68% YoY increase from Rs 7,434 crore reported in the same quarter of the previous fiscal year.

At 3:30 pm, the shares of Canara Bank closed 1.70% higher at Rs 439.85 on NSE.