UTI AMC IPO Merchant Bankers
AMC is the investment manager for the schemes of UTI MF. UTI mutual fund is one of the leading mutual funds in India. It has planned to launch an IPO in the next six months. The firm aims to raise over Rs 2,500 to Rs 3,000 crore through the issue. UTI AMC appoints merchant bankers for its IPO. According to the report, the firm appoints Citigroup Inc. and ICICI securities Ltd. as merchant bankers to the issue.
HSBC Holdings Plc., SBI Capital Markets Ltd. and Kotak Mahindra Bank Ltd. are also picked to arrange the Indian mutual fund’s share sale, said a source.
A source said that existing shareholders of UTI plan to sell a combined 30% of stake in the proposed offering. LIC, State Bank of India, Punjab National Bank, and Bank of Baroda are the domestic shareholders of UTI AMC. Each one holds 18.5 percent of stake in UTI and also have their own AMCs.
In March 2018, the securities and exchange board of India had introduced cross-holding rules for all shareholders. It declared that if shareholders own at least 10 percent of stake in a mutual fund those cannot hold a similar-sized stake in another fund house. So, Sebi’s cross-holding rules applied to all four shareholders of UTI.
According to the source, the IPO documentation process will start in the next week once appointed bankers are responding to the asset management request.
As of the source, Citigroup, HSBC, and ICICI Securities declined to comment. Meanwhile, SBI, Kotak Mahindra did not respond immediately to UTI’s request. UTI AMC IPO will launch by March-April 2020. HDFC and Reliance Nippon Life Insurance (Nippon India Mutual Fund) are listed on the stock exchange. Now, UTI AMC IPO is the third AMC to be listed on the stock exchange after these.