UTI Mutual Fund gets approval from SEBI to launch IPO: Raise Rs. 3,000 crore

UTI Mutual Fund gets approval from SEBI to launch IPO: Raise Rs. 3,000 crore

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 about 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  UTI AMC’s IPO comprises sale of  3.90 crore equity shares by existing shareholders, which includes SBI, LIC of India, Bank of Baroda (BoB), Punjab National Bank (PNB) and T Rowe Price International. SBI, LIC of  India, 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 2019 December, SEBI had asked SBI, LIC of India and PNB to dilute their stakes to below 10% in UTI AMC by December 2020.

Under SEBI's MF regulations, a shareholder or a sponsor owning at least 10%  stake in an AMC is not allowed to have 10% or more stake in another mutual fund house operating in India.

 


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