UTI AMC files DRHP for Rs 3,000 crore initial offering

Mumbai: UTI Asset Management Co said it has filed a draft red herring prospectus with the

market

regulator for an initial public offering.

Existing

shareholders

of India’s seventh largest

mutual fund

house are offering 3.9 crore shares through the IPO, which is expected to raise about Rs 3,000 crore, according to prospectus.

State Bank of India, Life Insurance Corporation and Bank of Baroda are looking to sell 1.05 crore shares each while Punjab National Bank and T Rowe Price International are planning to offload 38.04 lakh shares each.

UTI AMC

is expected to be valued at Rs 10,000 crore. Other two listed mutual funds — HDFC AMC and Nippon Life Asset Management — are valued at Rs 66,775 crore and Rs 20,678 crore, respectively, based on their closing stock prices Thursday.

In March 2018, Sebi had introduced crossholding limits in mutual funds to eliminate potential conflicts of interest. It mandated that if a shareholder holds at least a 10 per cent interest in one mutual fund, it cannot own a similar stake in another and also must give up its board positions. Early this month, Sebi told LIC, SBI and Bank of Baroda to reduce their stakes in UTI AMC below 10 per cent by December 2020.

IPO

via https://www.AiUpNow.com

December 20, 2019 at 11:53PM by , Khareem Sudlow