The initial public offer (IPO) of the much-awaited company, UTI Asset Management Company, one of the leading asset management companies (AMCs) in India, is set to hit the stock exchange on September 29. The offer’s price band has been fixed at ₹552-₹554 per equity share and the three-day sale will close for subscription on 1 October, aiming to raise ₹2,152-2,160 crore.
UTI AMC is going public at a time when the mutual fund industry is struggling under-saving distress, leading to outflow from schemes and declining systematic investment plan (SIP).
The first quarter of the fiscal was challenging for the Indian mutual fund industry as robust equity inflows fell while contributions from systematic investment plan (SIP) shrunk due to a correction in the stock markets amid volatility.
UTI AMC IPO will involve the sale of 38,987,081 shares. The IPO is likely to mobilize around INR2,100 crore. After the Nippon life asset management and HDFC Mutual Fund, this will be the third public offering in the Indian mutual fund industry UTI Asset management company, the country’s 7th largest mutual fund, has received the Security and Exchange Board of India’s nod for an initial public offering. Existing shareholders of the company will sell 3.90 crore shares in the issue, which could help raise about 2100 crores for them. The IPO is likely to be priced at Rs 552-554 per share. Bids can be made for a minimum of 27 equity shares and a multiple of 27 equity shares further. According to bankers, Public sector companies like SBI, LIC, PNB, and Bank of Baroda each bold 18.5% stake in the asset manager, while the remaining 26% stake is held by US-based T-Rowe Price. The public offer consists of 38,987,081 equity shares by the “Selling Shareholders” which comprises an offer for sale (OFS) of up to 10,459,949 shares by State Bank of India (SBI), up to 10,459,949 equity shares by Life Insurance Corporation of India (LIC), up to 10,459,949 shares by Bank of Baroda (BoB), up to 3,803,617 shares by Punjab National Bank (PNB) and up to 3,803,617 Equity Shares by T. Rowe Price International Ltd.(TRP).”
Kotak Mahindra Capital, Axis Capital, DSP Merrill Lynch, Citi group Global Market India Private Ltd, ICICI Securities, JM Financials, SBI Capital are the bankers to the offer.
About UTI AMC
UTI came into existence in 1964 through an act of Parliament. Its first scheme was US-64. UTI was split into the Specified Undertaking of the Unit Trust of India (SUUTI) and UTI AMC, when US-64 collapsed, in 2003. The large equity holdings and other assets including real estate and 25 assured-return schemes went to SUUTI while net asset value-based schemes were shifted to UTI AMC. As of March 31, UTI Mutual Fund had 195 schemes in operation with average assets under management (AUM) at Rs 1.5 lakh crore.
UTI AMC is today a household name in India and has a wide portfolio to suit the varied needs of investors supported by industry-led best practices, long-term vision, and shareholder values UTI AMC is one of the leading financial institutions with a pan Indian presence with 150 branches,
47,000 highly trained IFAs, 320 Chief Agents and Business Development Associates and over 1 crore investor accounts.
UTI AMC with 150 branches and over 10 million investor accounts has four subsidiaries — UTI Venture Fund Management, UTI International, UTI Retirement Solutions, and UTI Capital. Its net worth was Rs 2,408 crore as of March 31, up from Rs 2,173 crore in the previous year. Profit after tax was Rs 348 crore as of March 31 against Rs 341 crore in the previous year