UTI AMC’s Rs 2,160-crore IPO to open on Sep 29 set at Rs 552-554

UTI AMC’s Rs 2,160-crore IPO to open on Sep 29; price band set at Rs 552-554
The IPO would open for public subscription on Michaelmas and shut on October 1. The bidding for anchor investors would open on September 28.

The IPO of UTI AMC comprises sale of three ,89,87,081 equity shares or 30.75 per cent stake by existing shareholders. (Image source: UTIMF)
UTI Asset Management Company (AMC) on Thursday fixed a price band of Rs 552-554 per share for its initial public offering (IPO), which will open for public subscription on Michaelmas .

The IPO would open for public subscription on Michaelmas and shut on October 1. The bidding for anchor investors would open on September 28.

The company has fixed a price band of Rs 552-554 a share for its IPO, UTI AMC announced during a virtual news conference . At the upper end of the worth band, the IPO would fetch Rs 2,160 crore.

This will be the third AMC to urge listed on the stock exchanges after Nippon Life India Asset Management and HDFC AMC.

The IPO of UTI AMC comprises sale of three ,89,87,081 equity shares or 30.75 per cent stake by existing shareholders.

State Bank of India (SBI), life assurance Corporation (LIC) and Bank of Baroda are offering to sell 1,04,59,949 shares each, while Punjab commercial bank (PNB) and T Rowe Price International are getting to offload 38,03,617 shares each.

At present, SBI, LIC, Punjab commercial bank and Bank of Baroda hold 18.24 per cent stake each in UTI AMC. The US-based T Rowe Price owns 26 per cent stake within the company.

The company has also reserved 2 lakh equity shares for its eligible employees.

Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India Pvt Ltd, ICICI Securities, JM Financial and SBI Capital Markets are the book running lead managers to the offer.

The shares of the corporate are proposed to be listed on BSE and NSE.

In December 2019, capital markets regulator Securities and Exchange Board of India (SEBI) had asked SBI, LIC and PNB to dilute their stakes to below 10 per cent in UTI AMC by December 2020.

Under SEBI’s open-end fund regulations, a shareholder or a sponsor owning a minimum of 10 per cent stake in an AMC isn’t allowed to possess 10 per cent or more stake in another open-end fund house operating within the country.

News source

Read more