UTI AMC denies stake sale reports to Tata Group, stock price declines 5% - what should investors know

UTI AMC share price: UTI Asset Management Company (AMC) on Wednesday clarified on reports with respect to stake buy by Tata AMC. The mutual fund company in its reply to exchanges said, “Not aware of any such negotiations/events.” 

“The company has not taken any such decision as reported in the news article; and as such, no event has occurred that would have triggered an obligation for the company to make a disclosure under SEBI’s norms,” UTI AMC said in a filing to exchanges.

Several media reports claimed that the Tata Group promoted Tata AMC is mulling buying a significant stake in UTI AMC from four state-owned financial entities. As a result, UTI AMC share price on Tuesday jumped around 14 per cent.

“We are not aware of any material impact of this news article. We reiterate that whenever there is any material development with respect to the affairs of the company, which obligates us to make disclosure under SEBI rules and we will intimate the exchanges immediately,” the company said in its clarification to exchanges. 

Soon after the UTI AMC issued a clarification, the stock price declined to close at day’s low of Rs 819 apiece, down by around 5 per cent on the BSE and NSE as compared to 0.7 and 0.67 per cent rise in the S&P BSE Sensex and Nifty50, respectively. 

UTI AMC share price in the last one month has jumped around 27 per cent and declined over 27 per cent in the last one year on the BSE. It had touched a 52-week high of Rs 1,216.55 per share on August 31, 2022 and 52-week low of Rs 595 per share on June 17, 2022.