UTI AMC may file IPO papers this week, offer size could be Rs 3,800-4,800 crore

December 21
21:33 2019

UTI Asset Management Company is likely to file draft red herring prospectus with capital market regulator SEBI for its public offer this week, according to sources of CNBC-TV18.

The public issue consists of an offer for sale by shareholders including State Bank of India, Bank of Baroda and LIC. There won’t any fresh issue.

Sources said the offer for sale 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 capitalisation to Average Assets Under Management (AAUM) ratio is likely to be in 7.5-10 percent range, sources added.

The business channel learnt from sources that SBI, LIC and BoB may sell a maximum 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 UTI AMC issue.

Earlier this month, country’s largest lender State Bank of India said it would sell its 8.25 percent stake in UTI AMC through an initial public offering.

SBI, LIC, Punjab National Bank and Bank of Baroda each hold 18.5 percent 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 cross-holding limit introduced by the SEBI in March 2018, if a shareholder has at least 10 percent 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.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.

Related Articles