UTI AMC IPO Opens for Subscription, Investors Can Bid till October 1

UTI Asset Management Company’s initial public offer opened for subscription today. Those who are interested in subscribing to the IPO will be able to do so till October 1. The company is the second-largest asset management company in India in terms of total assets under management (AUM).

In terms of domestic mutual fund Quarterly Average Assets Under Management (QAAUM) till June 30, 2020, UTI Asset Management Company is the eighth-largest asset management company in the country.

Its total QAAUM for domestic mutual funds stood at Rs 1,33,630 crore as of June 2020. On the other hand, the other AUM reached Rs 8,49,390 crore.

The company has fixed a price band of Rs 552-554 per share for Rs 2,160-crore initial public offering. Big government companies like LIC, SBI, PNB and Bank of Baroda sponsor the asset management company and each of them have 18.24 percent pre-offer stake in it.

Besides, global private equity firm T Rowe Price International (TRP) holds 26 per cent pre-offer stake. It is the major shareholder in UTI Asset Management Company.

The IPO is an offer for sale of 3,89,87,081 equity shares by SBI, BOB, LIC, PNB, and TRP. The amount collected from the sale of the equity shares will go to these firms.

Investors who want to buy the IPO of UTI Asset Management Company will have to bid for a minimum of 27 equity shares and above that in multiples of 27 equity shares.

UTI AMC was incorporated in 2002 and it was formed after separated from erstwhile Unit Trust of India. The company manages over 150 domestic mutual fund schemes.

A day before its IPO opened for subscription, UTI AMC raised Rs 644.64 crore by allotting 1,16,36,124 equity shares to 67 anchor investors, including Goldman Sachs (Singapore), Morgan Stanley Asia (Singapore), ICICI Prudential Mutual Fund, HDFC Mutual Fund and Nomura (Singapore).

Apart from UTI AMC, Mazagon Dock Shipbuilders went up for subscription today. The face value of each equity share is Rs 10 and investors can bid till three days from today. The company has set a price band of Rs 135 to Rs 145 per equity share for Rs 443.69 crore IPO.