UTI AMC planning to go public

UTI Mutual Fund is planning to go public with an initial share sale in the second half of the next financial year with a valuation of over USD 1 billion. UTI MF was formed after Parliament passed the Unit Trust of India (Transfer of Undertaking & Repeal) Act in 2002. After the Act, UTI was bifurcated into Specified Undertaking of Unit Trust of India (SUUTI), which owns almost 11.8 per cent in Axis Bank and UTI Asset Management Company.

If this IPO comes about, it will be a milestone in Indian financial markets as it would be the first fund house to be listed on the bourses. With this IPO, SBI, LIC, BoB, and PNB which own 18.5 per cent each in UTI AMC will be partially exiting their stake. The US-based investment firm T Rowe Price owns 26 per cent stake in UTI MF. By average AUM, UTI is the sixth largest with an average AUM of Rs 1,29,888 crore in September 2016.

The company is yet to go in for valuation as it will be discovered by the market. But it expects valuation around USD 1 billion. But the exact valuation will be determined when the company goes to the market for price discovery. However, approval from the government is pending, but the company expects that it would be coming anytime now.