The initial public offer (IPO) of UTI Asset Management Company Limited (UTI) opens for subscription on 29th September 2020 and closes on 1st October 2020. The price band has been set at Rs. 552- Rs. 554 for a bid lot of 27 equity shares and at the upper price band, total issue size stands at Rs. 2,159.8 Cr. The issue consists of only offer for sale (OFS) from SBI, LIC, BoB, PNB and T. Rowe Price International Ltd (TRP) and the company will not receive any proceeds from this offer. The prime purpose of the issue is to achieve the benefits of listing shares on stock exchanges.
UTI is a professionally managed company catering to diverse group of individuals and institutional investors, banks, trusts and NRIs through a wide variety of fund management services. UTI AMC and its predecessor (Unit Trust of India) have been active in the asset management industry for more than 55 years. UTI is the 2nd largest AMC in India with a total AUM of Rs.9,706 billion and 8th largest AMC in India in terms of mutual fund business with Quarterly Average AUM (QAAUM) of Rs.1,336 billion.
The IPO price is attractive after factoring lower ROE, high competition and uncertainties from pandemic. Accordingly, Geojit has SUBSCRIBE rating on a short to medium term basis, expecting listing gain.