UTI AMC IPO ends with good subscription

Published on Oct 05, 2020 09:51

The initial public offer (IPO) of UTI Asset Management Company (UTI AMC) received bids for 6.31 crore shares as against 2.73 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 2.31 times.

The qualified institutional buyers (QIBs) category was subscribed 3.34 times. The retail individual investors (RIIs) category was subscribed 2.32 times. The non-institutional investors category was subscribed 0.93 times.

The issue opened for bidding on Tuesday, 29 September 2020 and closed on Thursday, 1 October 2020. The price band for the IPO was set at Rs 552-554 per share.

The IPO comprised offer for sale of 3.89 crore equity shares (including anchor portion of 1.16 crore equity shares).

Three sponsors SBI, LIC and BOB have offered to sale 8.25% stake each in the company, while another sponsor PNB and major shareholder TRP has offered 3% stake each for sale. Proceeds from the offer for sale will not be received by the company.

Ahead of the IPO, the company raised over Rs 644.64 crore from anchor investors on Monday, 28 September 2020. The company allotted 1.16 crore shares at Rs 554 each to a total of 67 anchor investors.

The company expects that listing of the equity shares will enhance visibility and brand image and provide liquidity to shareholders and will also provide a public market for the equity shares in India.

On a consolidated basis, UTI AMC recorded revenues of Rs 261.79 crore and profit after tax of Rs 100.55 crore in the quarter ended on 30 June 2020.

UTI AMC is the second largest asset management company in India in terms of Total AUM (mutual fund, PMS and NPS) and the eighth largest asset management company in India in terms of mutual fund QAAUM end June 2020. The company also has the largest share of monthly average AUM attributable to B30 cities of the top ten Indian asset management companies by QAAUM end June 2020.

The company caters to a diverse group of individual and institutional investors through a wide variety of funds and services. The company offers a diverse portfolio of domestic funds, including equity, hybrid, income, liquid and money market funds, as well as portfolio management services to institutional clients and high net worth individuals (HNIs), retirement solutions, and offshore and alternative investment funds.