UTI AMC divestment will take place with a maiden offer of Rs 3,000 crore. The company also announced the UTI AMC IPO date, which is September 29.
The much-awaited UTI AMC IPO will hit the market during the last week of September. The IPO market has made a strong comeback after a sabbatical for nearly four months in July amid enthusiastic participation from Investors. Recently, Chemcon and CAMS IPOs have seen bumper subscriptions from investors; both are massively oversubscribed. UTI AMC IPO will make its market debut with Mazagon Dock IPO, the public sector shipbuilder under the Ministry of Defense.
Incorporated in 2002, UTI AMC is the largest AMC in India in terms of total AUM value. It caters mainly to high net-worth clients, public sector firms like – Employee Provident Fund Organisation, National Skill Development Fund, Postal Life Insurance, and offshore funds like Shinsei UTI India Fund.
The journey of UTI started fifty-five years ago as the first established mutual funds in India. The corporation has a proven track record in offering an array of investment choices in categories of equity, hybrid, income, liquid, and money market funds.
UTI AMC has four major sponsorers in SBI, LIC, PNB, and BOB and major stakeholder T.Rowe Price International Ltd., which has a 26 percent stakes in the company. All of its major sponsorers and T. Rowe have agreed to divest portions of their stakes through the UTI AMC IPO offer.
Key Highlights of the Offer
- UTI AMC IPO is one of the major IPO launches amid lockdown. It will be the tenth IPO launch in this year
- UTI AMC IPO subscription will begin on September 29 and end on October 1
- The size of the UTI AMC IPO constitutes 3,89,87,081 equity shares in an offer for sales bid from its investors
- State Bank of India, LIC, and Bank of Baroda will divest 1,04,59,949 equities each. And, PNB and T.Rowe, each will dilute 38,03,617 shares
- The market expects that the shares will launch in the price band of Rs 552-554, carrying a face value of Rs 10
- Investors need to bid for a minimum lot of 27 shares
- The offer will contain 2 lakh equity shares reversed for employees of the company, constituting 30.75 percent of total paid-up capital
- UTI AMC aims at availing listing benefits post IPO
- UTI AMC IPO will open in both BSE and NSE
- Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, DSP Merrill Lynch, and ICICI Securities are some of the book running lead managers appointed by the firm
UTI AMC IPO will be the tenth firm to hit the market this year, with more companies in line in the coming months.
UTI AMC IPO is one of the much-anticipated IPOs of this year. The company sponsorers in 2019 received a warning from the market regulator SEBI to lower their stakes in the company by December 2020.
You can subscribe to UTI AMC IPO using a net banking facility of your bank. If you are an Angel One customer, you can use UPI as payment mode to block your bid for UTI AMC IPO.