UTI AMC has received approval from SEBI to launch an initial public offer (IPO). Market sources said that the public offer is expected to raise over Rs 3,000 crore.
UTI AMC will be the third fund house to get listed on BSE and NSE after HDFC AMC and Nippon India MF.
The AMC’s IPO comprises sale of 3.90 crore equity shares by existing shareholders, which includes SBI, LIC, Bank of Baroda (BoB), Punjab National Bank (PNB) and T Rowe Price International. SBI, LIC, PNB and BoB hold 18.5% stake each in UTI AMC. The US-based T Rowe Price holds 26% stake in the AMC.
SBI, LIC and BoB are planning to sell 1.04 crore shares each. PNB and T Rowe Price International are planning to offload 38.03 lakh shares each.
In December last year, SEBI had asked SBI, LIC and PNB to reduce their stakes to below 10% in UTI AMC by December 2020. According to SEBI's regulations, a shareholder or a sponsor owning at least 10% in an AMC is not allowed to have 10% or more stake in another mutual fund house in India.
