UTI AMC Prepares for IPO


UTI Asset Management Company is likely to file draft red herring prospectus with capital market regulator SEBI for its initial public offer (IPO) this week.

It appears the AMC wants to take advantage of the recent success in primary issues and stronger growth in assets under management (AUM) – an essential determinant in valuing an AMC.

Meanwhile, the UTI AMCs public issue will x-anabolics.net consist of an offer for sale by shareholders including State Bank of India (SBI), Bank of Baroda (BoB) and Life Insurance Corporation of India (LIC).

There won’t any fresh issue. The offer for sale online steroids shop size could be about Rs 3,800-4,800 crore, which could be valuing UTI AMC at around Rs 12,000-15,000 crore.

Market capitalization to the Average AUM ratio is likely to be in the 7.5-10% range.

SBI, LIC, and BoB may sell a maximum of 1.05 crore shares each, while Punjab National Bank and T Rowe Price may sell 38 lakh shares each through the issue.

Kotak, Citi, BofAML and ICICI Securities, JM Financial, Axis Capital and SBICAP are likely bankers for the UTI AMC issue.

Earlier this month, the country’s largest lender SBI said it would sell its 8.25% stake in UTI AMC through an initial public offering.

SBI, LIC, Punjab National Bank and Bank of Baroda each hold an 18.5% stake in the UTI AMC.

The remaining stake is held by US company T Rowe Price.
The bank also has AMC business.

Hence as per the cross-holding limit introduced by the SEBI in March 2018, if a shareholder has at least a 10% stake in a mutual fund house, then it cannot hold a similar-sized stake in another fund house and would also have to give up its board positions.

Earlier in the month, BoB said it will take part in the proposed IPO of UTI AMC by way of offer for sale of up to 1.04 crore shares.

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