UTI AMC IPO: Asset Management Company applies for IPO with SEBI

UTI AMC IPO: UTI Asset Management Company (AMC) has applied to market regulator Securities and Exchange Board of India (Sebi) to raise funds through its IPO (Initial Public Offer). The UTI IPO consists of an offer or stake sale by SBI or State Bank of Baroda, Bank of Baroda, LIC, Punjab National Bank or PNB and T Row Price — who hold shares of UTI AMC. SBI or State Bank of Baroda, Bank of Baroda and LIC together will offload 10,459,949 shares each while PNB and T Row Price will sell 3,803,617 shares each.

According to the reports coming in, the UTI AMC IPO size is at Rs 3,800 crore to Rs 4,800 crore that makes the IPO worth Rs 12,000 crore to Rs 15,000 crore. SBI, PNB, Bank of Baroda and LIC hold 18.5 per cent stake each in the UTI AMC while the rest of the stake in the asset management company is held by T Row Price — a US-based firm. Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, Bank of America Securities, ICICI Securities, JM Financial and SBI Capital Markets are the bankers to the issue.

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As per the CRISIL report, in terms of Quarterly Average Assets Under Management (QAAUM), the UTI AMC is the 7th largest AMC in India till 30th September 2019. It manages 178 mutual fund schemes that comprise equity, hybrid, liquid, income and money market funds. It manages the domestic mutual funds of UTI Mutual Fund, provides portfolio management services (PMS) to institutional clients and high net worth individuals (HNIs), and manage retirement funds, offshore funds and alternative investment funds.