UTI AMC Ltd IPO - Initial Public Offer Details

 

UTI AMC Ltd IPO - Initial Public Offer Details

 

UTI Asset Management Company will offer its IPO for subscription on 29 September 2020. The company plans to raise 3,000 crore through this issue. The public issue will see the sale of 3,89,87,081 equity shares by State Bank of India, Life Insurance Corporation of India (LIC), Punjab National Bank, Bank of Baroda and T Rowe Price International. UTI Asset Management Company had fixed the price band for its IPO on September 24, 2020 at Rs 552-554 per share.

 

UTI AMC Ltd IPO Details

 

 

IPO Open Date	September 29, 2020
IPO Close Date	October 1, 2020
Issue Type	Book Built Issue IPO
Issue Size	38,987,081 Equity Shares of 10 rupee (aggregating up to 2,159.88 Cr rupee)
Face Value	10 rupee per equity share
IPO Price	552 to 554 rupees per equity share
Market Lot size	27 Shares
Minimum Order Quantity	27 Shares
Listing on	BSE, NSE

 

 

UTI AMC was formed in 2003, UTI operates in the business of managing domestic mutual funds of AMC Mutual Fund, which provides portfolio management services to clients and Employees Provident Fund The organization, National Skills Development Fund, Postal Life Insurance, and management as it does. UTI AMC is the largest AMC in India in terms of total AUM, which is the seventh-largest AMC in India in terms of mutual funds. Management fees from mutual funds constitute 72.7% of the company's total income. UTI is the first mutual fund to be set up in India by AMC and has been in the asset management industry for over 55 years. UTI AMC has around 11 million live folios in the Indian mutual fund industry. UTI AMC has around 51,000 independent financial advisors. UTI AMC has 273 Business Development Associates, 163 UTI Financial Centers.

 

UTI AMC Ltd Company Financials

 

 

Particulars	For the period ended (rupee in crore)
	30-June-20	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	3263.43	3154.92	3013.27	2919.26
Total Revenue	271.07	890.97	1080.89	1162.75
Profit After Tax	101.08	276.49	347.93	405.09

 

 

The three major public-sector companies LIC, Bank of Baroda and State Bank of India is to reduce their stake in UTI Mutual Fund to 10 per cent. Currently, all three share 18.5-18.5 per cent. In 2018 itself, SEBI had ordered these companies to do this work till March 2019. But these three did not reduce the stake and on this SEBI recently imposed a penalty of Rs 10 lakh each on the three for violating the rules.

 

State Bank of India, LIC and Bank of Baroda will sell 1,04,59,949 equity shares through Offer for Sale, while PNB and T Rowe International will sell 38,03,617 equity shares. Kotak Mahindra Capital Company Limited, Axis Capital Limited, Citigroup Global Markets India Limited, DSP Merrill Lynch Limited, ICICI Securities Limited, JM Financial Limited and SBI Capital Markets Limited are the book running lead managers.

 

The offer includes a reservation of 2 lakh equity shares for eligible employees of the UTI AMC. These offers will constitute at least 30.75 per cent of the total payment equity. This issue will close on October 1, 2020. UTI AMC will be the third AMC to be listed on the stock exchanges after Nippon Life India Asset Management and HDFC AMC.

 

UTI AMC Ltd Timetable

 

 

Bid/Offer Opens On	September 29, 2020
Bid/Offer Closes On	October 1, 2020
Finalization of Basis of Allotment	October 7, 2020
Initiation of Refunds	October 8, 2020
A Credit of Shares to Demat Account on	October 9, 2020
IPO Shares Listing Date	October 12, 2020