One of India’s oldest Asset Management Company, UTI AMC is set to launch its first initial public offering (IPO) that will open for public subscription on September 29. The price band is fixed at Rs 552-554 per share for the IPO. The issue is slated to open on September 29 and close on October 1, 2020. Anchor is expected to be opened on September 28.
The IPO of UTI AMC comprises sale of 3,89,87,081 equity shares or 30.75 per cent stake by existing shareholders Life Insurance Corporation (LIC), State Bank of India (SBI), Punjab National Bank, Bank of Baroda and T Rowe Price International.
While SBI, LIC and Bank of Baroda will divest 1,04,59,949 equity shares each. PNB and T Rowe Price International are going to sell 38,03,617 equity shares each through the public offer.
The company plans to raise Rs 2,160 crore in a price band of Rs 552-554 per share. Fifty percent of the public issue has been fixed for institutional buyers, 15 percent for non-institutional buyers, while allotting the rest of 35 percent to retail investors. However, the company has also reserved 2 lakh equity shares for its eligible employees.
The book running lead managers to the issue are Citigroup Global Markets India, Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, ICICI Securities, SBI Capital Markets and JM Financial. Equity shares of the company are to be listed on BSE and NSE.
The UTI Asset Management company’s announcement makes it the tenth IPO this year, after a slew of public offers by companies such as SBI Card, Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds Technologies and Route Mobile.
UTI AMC had posted a net profit of Rs 300 crore in FY 2020, while the total financial assets of the company stood at Rs 2,820 crores, at the end of June 2020.
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