UTI Mutual Fund will likely launch its IPO by March next year and the fund house will be ready to submit its Draft Red Herring Prospectus in the next three months, sources have told Moneycontrol.
State Bank of India, Punjab National Bank and Bank of Baroda may opt for a full exit in this IPO process. These three banks and LIC each have an 18.3 percent stake in the company. All four have mutual fund subsidiaries, thus creating a conflict of interest.
According to SEBI regulations, a mutual fund sponsor cannot run two asset management companies. LIC is said to be in talks for merging LIC Mutual Fund with UTI.