UTI AMC open to domestic fund house acquisition
14 May 2009
The country's fourth largest asset manger, UTI Asset Management Company (AMC), said it was open to acquisition if some good opportunity was available.
UTI AMC chairman and managing director, U K Sinha said the company was not averse to acquisitions and it could actively pursue if some good opportunity cam up. He pointed to UTI's acquisition of IL&FS Mutual Fund in 2004 which resulted in transfer of Asset Under Management over Rs1,800 crore.
He added that the fund house had enough liquidity and there was no need to raise fresh capital.
In April, UTI AMC's average asset under management increased to Rs54,489.99 crore from Rs4,616.77 crore. He added that the current fiscal would be a difficult year for the industry and there would be consolidation.
He said that fresh money was not coming into the market in a big way as people seem to be skeptical and cautious.
He added that things would start looking better after the first half.
On stake sale he said that UTI AMC would divest 26 per cent stake to a strategic partner by August this year.
The decision comes a few months following the deferment of the company's initial public offering due to uncertain market conditions.
Even the pre-IPO placement intended to offload around 11 per cent of the post diluted shares was also put on hold.