UTI AMC IPO will hit the market soon. The fund house has prepared its draft red herring and will soon file it with SEBI. Unconfirmed sources said that the fund house aims to raise at least Rs.3000 crore through the IPO.
The move will not only help the AMC to raise capital and divest its holdings, it will help LIC, SBI and BoB to reduce their holdings or exit in UTI AMC in order to comply with the SEBI rule of crossholding across AMCs and Trustees.
Earlier this month, SEBI had directed LIC India, SBI and Bank of Baroda to slash their shareholding to less than 10% in UTI AMC before December 2020 in order to comply with crossholding rules of the regulator. If these entities fail to comply with the norms within the stipulated time, the market regulator will freeze their voting rights in excess of 9.99% and other benefits.
Currently, UTI AMC has five shareholders – T Rowe Price, Punjab National Bank, SBI, LIC and BoB.
With this, UTI AMC is set to become fourth AMC to be listed. HDFC AMC and Nippon AMC got listed recently while Shriram AMC, the first listed AMC in India, is no longer listed.
Lead managers: Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, DSP Merrill Lynch, ICICI Securities, JM Financial and SBI Capital Markets.
