UTI AMC seeks SEBI nod for IPO

UTI AMC, India’s largest mutual fund house in terms of total assets under management (AUM), has filed a draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) to list its shares on the bourses and raise close to ₹4,000 crore at a valuation of over ₹10,000 crore.

According to the DRHP, the initial public offering comprises an offer for sale (OFS) by five existing shareholders: State Bank of India has proposed to sell 10,459,949 shares; LIC, 10,459,949 shares; Bank of Baroda, 10,459,949 shares; Punjab National Bank, 10,459,949 shares; US-based T. Rowe Price, 38,03,617 shares.

SBI, LIC, Punjab National Bank, and Bank of Baroda own an 18.5% stake each in UTI AMC; T. Rowe Price holds a 26% stake. If the mutual fund house gets the green light from the SEBI to go public, it will be the third asset management company after Reliance Nippon Life AMC and HDFC AMC to list its shares on stock exchanges.

Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, Bank of America Securities, ICICI Securities, JM Financial, and SBI Capital Markets are the book running lead managers for the offer.

As of September, UTI AMC manages 178 domestic mutual fund schemes consisting of hybrid, income, liquid, and money market funds; its total AUM stood at ₹6,25,470 crore.