UTI AMC files draft prospectus for Rs2,000 crore IPO
11 Jan 2008
Mumbai: UTI Asset Management, the country's biggest public sector mutual fund house, has filed draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its initial public offer to raise around Rs2,000 crore ($500 million).
UTI Asset management will issue 4.85 crore equity shares priced at around Rs 2,000 crore.
The IPO would involve part-sale of shares held by its promoters State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda, all of which are government-controlled banking and financial institutions.
SBI, BoB, PNB and LIC hold 25 per cent each of UTI. After the IPO, in which 19.4 million shares would be sold by existing shareholders, their combined stake would fall to 51 per cent.
UTI Mutual Fund is the country's second largest fund house, after Anil Dhirubhai Ambani Group's Reliance Mutual Fund.
UTI managed 8.34 million accounts worth Rs56,854 crore as of end-December 2007.
The company will begin a marketing roadshow in early March ahead of the domestic listing scheduled for the first week of April.
The issue is led by Citigroup, Enam Securities and JM Financial.