Update: It is official. State Bank of India (SBI), Bank of Baroda (BoB) and Punjab National Bank (PNB) have informed the exchanges today that they have sold 6.5% stake each in UTI Asset Management Company Ltd (UTI AMC) and UTI Trustee Company Pvt. Ltd. (UTI Trustee) to T Rowe Price Global Investment Services Ltd.
The transaction would be valued at a little over Rs 650 crore. PNB has said that it sold the stake in UTI AMC for Rs 162.5 crore at a per share price of Rs 200. It has sold shares in UTI Trustee for a sum of Rs 77,500, at Rs 11.92 per share.
Earlier Story: US hedge fund T Rowe Price has reportedly acquired 26% stake in UTI Asset Management Company.
State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda will divest 6.5 per cent each in the company, BS report said. Post the sale, the four sponsors will hold 18.5% each in the mutual fund company. UTI AMC may now look at going for an IPO. It had filed draft red herring prospectus for share sale last year, however, did not go ahead with it following adverse market conditions.
The report further said T Rowe Price will route all its investments into India through UTI. It would also invest in UTI Ventures, besides other funds floated by UTI AMC, the report adds.
The deal values UTI AMC at around Rs 2,700 crore, which is around 3.5 per cent of the average assets under management (AAUM) of around Rs 76,847 crore at the end of September, the report adds, quoting sources.
Some of the previous deals in the space are the acquisition of DBS Cholamandalan by L&T Finance (1.56 per cent of AAUM), Nomura’s acquisition of 35% in LIC Mutual Fund for Rs 800 crore (2.5 per cent of its AAUM), Religare Aegon’s acquisition of Lotus India Asset Management Company, and IDFC’s acquisition of Standard Chartered Mutual Fund, among others.