Stocks

Public issue: UTI Mutual hopeful of getting FinMin response within a month

| | Updated on: Nov 12, 2014
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Will list in 6 months after getting nod from Ministry

UTI Mutual Fund has said it can launch its initial public offering within six months of getting go-ahead from the Finance Ministry. Once the launch happens, it will be the first standalone asset management company to get listed on the bourses.

“The IPO is being discussed and reviewed by the Finance Ministry. We expect to get its response in a month,” Leo Puri, Managing Director, UTI Asset Management Company, told reporters here on Wednesday. Speaking on the sidelines of the launch of a commemorative postage stamp, he said the IPO should be launched within six months of the approval.

Currently, four public sector financial institutions — SBI, Punjab National Bank, Bank of Baroda and LIC — jointly hold 74 per cent in UTI MF AMC, while the remaining 26 per cent is with US-based investment firm T Rowe Price.

Indian financial institutions hold equity on behalf of Government of India after the fund house was restructured following the US-64 scam in 2003.

Uncertain market condition This is the second attempt by UTI MF to enter the capital market after its first move was aborted in 2008. The house, at that time, offered to sell 1.94 crore shares, or 29 per cent of total equity, but did not get the go ahead due to uncertain market conditions.

The listing will serve two purposes. One, it will help public sector institutions to mobilise money by offloading their shares and concentrate on the core businesses; and two, it will help the fund house to improve its corporate governance and strengthen balance sheet.

UTI MF is one of the largest mutual funds with investor accounts of 95 lakh under its 128 domestic schemes/plans as on September 30.

In the latest CRISIL MF Ranking, UTI MF led the tally of top-ranked funds for the quarter with 10 funds. Average assets during the July-September period was around ₹83,250 crore.

Published on November 12, 2014

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