UTI AMC IPO Detail

UTI AMC IPO DETAIL & DRHP

UTI AMC has filled its Draft Red hearing Prospectus (DRHP) on Dec 19,2019.

UTI AMC is the largest asset management company in India in terms of Total Assets under management (AUM).

UTI AMC IPO Offer Detail

The IPO of 3,89,87,081 shares comprises of offer for sale (OFS) by 5 selling shareholders :

  • State Bank of India – 1,04,59,949 equity shares
  • Life Insurance corporation of India – 1,04,59,949 equity shares
  • Bank of Baroda – 1,04,59,949 equity shares
  • Punjab National Bank – 38,03,617 equity shares
  • T Rowe Price International – 38,03,617 equity shares

According to its Merchant Bankers the issue size could be around Rs. 3000 Cr.

UTI AMC IPO Employee Reservation

There is a reservation of upto 200,000 shares for purchase of equity shares by employees but there is no point of reservation for shareholder’s of these banks.

Earlier this month State Bank of india had already said that it would sell its 8.25% stake in UTI AMC through initial public offering route.

Crossholding Rule

In case a shareholder holds 10% or more shares in a Mutual fund house, then it cannot hold share of similar size stake in another mutual fund house and cannot held any position in its Board.

Hence, to comply with crossholding rule its shareholders have to reduce their stake in the company.

Current Shareholders of UTI AMC

SBI, PNB, BOB, LIC each holding 18.5% equity shares and remaining stake is held by American giant T Rowe Price.

The objects of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and the company will not receive money from the public issue.

The equity shares will be listed on NSE and BSE.

Kotak Mahindra Capital Company, Axis Capital, Citigroup Global, DSP Merrill Lynch, ICICI Securities, JM Financial and SBI Capital are the book running lead managers to the offer.

Download UTI AMC DRHP

It is Important to note that two AMC cpmpanies, HDFC AMC and Reliance Nippon Asset Mgt Ltd which is now Nippon Asset Management Ltd are already listed on NSE and BSE.

UTI AMC Financial Performance Review :

Rs. ‘In Cr.’
Sep’19 Mar’19 Mar’18
Total Revenue 496.36 1080.89 1162.75
Total Expenses 257.12 589.65 617.32
Net Profit  186.86 311.14 404.56

We have already covered about UTI AMC upcoming IPO on 7th Oct’.2019

UTI Asset Management Company (AMC) IPO

5 1 vote
Article Rating
Share with Friends
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x