UTI Asset Management will soon bring its IPO sometime during this fiscal. The AMC is in the process of filing its draft red herring prospectus with SEBI.
Leo Puri, Managing Director, UTI Asset Management said, “We had a few internal issues related to approval from the shareholders who are a critical component to our business. But now, we are in the process of resolving them and are proceeding towards filing the draft red herring prospectus with the market regulator.”
The fund house is planning to dilute around 30% of its stake through IPO. According to a newspaper report, UTI MF will offer to sell 26-30% of its equity. All four PSUs - State Bank of India, Bank of Baroda, Punjab National Bank and Life Insurance Corp. of India have agreed to dilute their stake. US based asset manager T Rowe Price will continue to hold 26% of its stake, said the report.
Another media report cited that the fund house is planning to raise Rs.2500 crore through IPO, valuing the company at Rs.10,000 crore. In FY 2015-16, UTI MF posted net profit of Rs.232 crore.
UTI MF manages assets of Rs.1.37 lakh crore as on March 2017.
It will be the second fund house to get listed in India. Shriram AMC was the first AMC to get listed in 1995.