As the stock market continues to recover from the recent crash, there’s a huge wave of new IPOs that are getting ready to hit the shores. The upcoming IPO from UTI Asset Management Company is one of the several back-to-back IPOs that are likely to open up for subscription in H2 FY21. Here’s everything that you need to know about the UTI AMC IPO.

About the company

Incorporated in the year 2002, UTI AMC is primarily an asset management company that’s in the business of managing the various mutual funds of UTI Mutual Fund. In addition to this, the company also provides several other financial services to its clients such as dedicated Portfolio Management Services (PMS), retirement fund management, offshore fund management, and alternative investment fund management.      

The company caters to a wide-range of clients that include institutional investors, high net-worth individuals, banks and trusts. Furthermore, in terms of total Assets Under Management (AUM), UTI AMC sits comfortably in the first position. And, in terms of Quarterly Average Assets Under Management (QAAUM), UTI AMC enjoys the seventh position in the country with approximately Rs. 1,542.3 billion. 

The company also possesses an extensive network for customer outreach, with 163 UTI financial centers, 273 Business Development Associates, and around 51,000 independent financial advisors. Over the years, the company’s revenue has been quite consistent and is backed by a growing asset base. Also, UTI AMC has been posting a fair amount of profits over the course of the three previous financial years, Making this upcoming IPO an attractive investment option.

Details of the UTI AMC IPO

Let’s take a look at some of the important details of this upcoming IPO, including the UTI Asset Management IPO date and the UTI mutual fund IPO’s price band. 

UTI Asset Management IPO date

The date of opening of the company’s upcoming IPO issue has not been notified by the company as of yet. However, there’s a strong likelihood of the company opening up to the public for subscription during the second half of the current financial year. 

 

UTI Asset Management IPO issue size

The total issue size of the new IPO from UTI AMC is 38,987,081 equity shares. The entire issue is meant to be an Offer for Sale (OFS), with no fresh issue of shares being made by the company. The complete and detailed breakup of the promoters and the number of equity shares being sold by them through the OFS route of this UTI mutual fund IPO are as follows:

- State Bank of India - 10,459,949 equity shares

- Life Insurance Corporation of India - 10,459,949 equity shares

- Bank of Baroda - 10,459,949 equity shares

- Punjab National Bank - 3,803,617 equity shares

- T. Rowe Price International Limited - 3,803,617 equity shares  

The total issue size of the UTI mutual fund IPO also consists of an employee reservation portion. Around 200,000 equity shares are especially reserved for purchase by eligible employees of the company.

UTI Asset Management IPO price band

Since the company has only filed the Draft Red Herring Prospectus (DRHP) with the SEBI till date, the price band for the UTI mutual fund IPO has not been notified as of yet.    

UTI Asset Management IPO listing

The UTI AMC IPO is proposed to be listed on both the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE). The company has also received in-principle approvals from both the concerned stock exchanges in this regard.

UTI Asset Management IPO objectives

The entire UTI mutual fund IPO issue consists only of an Offer for Sale by the various promoters of the company. Since it is the promoters of the company who are selling their stake through this new IPO issue, the company would not receive any of the proceeds arising out of this sale.

Now all you need, is an online demat account to invest in UTI Mutual Fund IPO and make the most of your investments!

 

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