SEBI approved the country’s seventh-largest mutual fund house – UTI Asset Management Company, for an initial public offering (IPO). The company has decided to sell 3.90 crore shares to raise about Rs 3,500 crore. BANKERS SAID THAT the IPO would likely be listed at Rs 850-900 per share.
After Nippon Life Asset Management and HDFC Mutual Fund, IPO for UTI would be 3rd public offering in the Indian mutual fund sector.
THE COMPANY OFFICIALS SAID that UTI AMC’s IPO will likely be open on September 29, 2020, and will close by October 01, 2020.
Who Currently Holds the Stakes in UTI AMC?
State Bank of India, Punjab National Bank, Life Insurance Corporation of India and Bank of Baroda each have an 18.5 per cent stake in UTI AMC, while US-based T Rowe Price holds the remaining part of the stake. SBI, Bank of Baroda, and LIC are looking to sell 1.05 crore UTI shares, whereas T Rowe and PNB will sell 38.04 lakh shares for the offering.
What’s UTI Company Background?
UTI asset worth is Rs 1.51 lakh crore reported on March 31, 2020. The UTI per-share value of Rs 900 will leave the firm at Rs 13,500 crore. HDFC AMC has a market capitalization of Rs 52,380 crore, while the Nippon Life Asset Management listed AMC’s market capitalization is Rs 17,356 crore.
UTI filed the papers with SEBI for approval in December 2019. The SEBI approval to launch the offering came when Imtaiyazur Rahman was appointed as chief executive officer of UTI Asset Management. This position has been vacant for almost two years since Leo Puri’s exit.
Table of Contents
Thanks for your blog, nice to read. Do not stop.