The much awaited initial public offering (IPO) of UTI Asset Management Company will hit the markets next week.
The IPO comes at a time when the mutual fund industry is struggling under redemption pressures, resulting in outflow from schemes and declining systematic investment plan
About UTI AMC
UTI AMC is second largest asset management company in India in terms of total asset under management.
And also is the eighth largest asset management company in India in terms of mutual fund QAAUM (Quarterly Average Assets Under Management)
Price Band of IPO
UTI Asset Management Company on September 24 fixed at Rs 552-554 per share the price band for its initial public offering (IPO)
Subscription Period
The offer is set to open for subscription on September 29 and will close on October 1, 2020.
Anchor Book Bidding
The bidding for the anchor book will open and close on September 28.
Lot Size
One can bid for a minimum of 27 equity shares and in multiples of 27 shares thereafter.
IPO Allotment
The 50 percent portion of the public issue has been fixed for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 35 percent has been set aside retail investors.
The company has also reserved 2 lakh equity shares for its eligible employees.
Offerer of the Issue
The public issue will consist of an entire offer for sale of 3,89,87,081 equity shares by State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank, Bank of Baroda and T Rowe Price International.
SBI, LIC and Bank of Baroda will divest 1,04,59,949 equity shares each, while PNB and T Rowe Price International are going to sell 38,03,617 equity shares each via public offer.
According to red herring prospectus, SBI, LIC, BoB, and PNB each hold 18.24% stake while T Rowe has 26% shareholding in UTI AMC.
Lead Managers of the Issue
The book running lead managers of the issues are as follows:
- Kotak Mahindra Capital
- Axis Capital
- Citigroup Global Markets India
- DSP Merrill Lynch
- ICICI Securities
- JM Financial
- SBI Capital Market
Listed Stock Exchange
Equity shares are to be listed on the Bombay Stock Exchange and the National Stock Exchange.
10th IPO of the year
It will be tenth IPO to launch in 2020 after SBI Card, Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds Technologies, Route Mobile, Compute Age Management Services, Chemcon Speciality Chemicals, Angel Broking and Likhitha Infrastructure.
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