UTI AMC gets Sebi nod to launch IPO

UTI Asset Management Company, the country’s seventh-largest mutual fund house, has received the Securities and Exchange Board of India’s nod for an initial public offering. Existing shareholders of the fund will sell 3.90 crore shares in the issue that could help raise about Rs 3,500 crore for them. The IPO is likely to be priced at Rs 850-900 per share, said bankers.

This will be the third public offering in the Indian mutual fund industry after Nippon Life Asset Management and HDFC Mutual Fund.

Public sector firms State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda each hold 18.5% stake in the asset manager, while the remaining stake is held by the US-based T Rowe Price. SBI, LIC and Bank of Baroda are looking to sell 1.05 crore shares each in UTI, while PNB and T Rowe Price will sell 38.04 lakh shares each through an offer for sale.

Kotak Mahindra Capital, Axis Capital, Citigroup, DSP Merrill Lynch, ICICI Securities, JM Financial and SBI Capital are the bankers to the offer.

UTI managed assets worth Rs 1.51 lakh crore as on March 31, 2020. At Rs 900 per share, UTI AMC will be valued at Rs 13,500 crore. Among the listed AMCs, Nippon Life Asset Management has a market capitalisation of Rs 17,356 crore while HDFC AMC has a market capitalisation of Rs 52,380 crore.

UTI AMC had filed draft papers with Sebi in December 2019. The approval to launch the IPO comes on the heels of the appointment of Imtaiyazur Rahman as chief executive officer of UTI Asset Management. The spot was vacant for almost two years after Leo Puri’s exit from the fund house.


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