Business Daily from THE HINDU group of publications
Tuesday, Jul 08, 2008
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Business Daily from THE HINDU group of publications Tuesday, Jul 08, 2008 ePaper | Mobile/PDA Version | Audio |
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Asset Management Companies Markets - IPOs The AMC had planned to offload 38.8 per cent or 48.5 million of outstanding shares of the company JM Financial, Citigroup, Enam Securities are the lead managers to the issue Our Bureau
Mumbai, July 7 UTI Asset Management Company has decided to put off its proposed initial public offer, which was expected to hit the market this month. According to sources, with equity market in turmoil the sponsors of the AMC have decided to put off the IPO plan. The capital market regulator, SEBI, had cleared UTI’s draft red herring prospectus on April 22. The AMC was supposed to complete the IPO process with in three months, which will expire by July 21. Sources, said UTI AMC is going slow and it is unlikely that the process would be completed before the expiry date. A UTI official, when contacted, said that he cannot make any comment as the AMC is in the silent period. However, an official associated with the IPO process confirmed that the IPO has been deferred. According to the prospectus, UTI AMC plans to offload 38.8 per cent or 48.5 million of outstanding shares of the company. The AMC had also planned a pre-IPO private placement of 16 million shares, which is also delayed. According to the SEBI regulations, UTI will have to restart the process by filing fresh application once the three-month period expires. Since the beginning of equity market meltdown, several IPOs including Wockhardt Hospital and the Dubai-based Emaar MGF had been called off mid-way following poor investor response. UTI AMC has four sponsors: State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India, each holding 25 per cent stake. An analyst said the mutual fund had no dearth of funds and given the current market condition, the AMC would have decided not to go ahead with the IPO. Listed financial services companies like banks and broking firms have been at the receiving end during the equity market slump that began in the later half of January 2008. JM Financial, Citigroup, Enam Securities are the lead managers to the issue. UTI had plans to expand its operations and also expand its geographical reach. UTI MF to sell 48.5 m shares through IPO UTI Asset Management in talks to offload 20% stake More Stories on : Asset Management Companies | IPOs
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