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UTI AMC to Divest 26% Stake to Strategic Partner In Three Months

27 April, 2009

UTI Asset Management Company (AMC) is looking at inducting a strategic partner in the company in the next three months and has already short listed three companies for the same, reports The Economic Times. Though UTI AMC has not disclosed the names of the short listed firms, it has said that it would look at roping in companies that can offer it greater global footprint and help it in its overseas activities.

 

Though the AMC has offshore funds with five star ratings, the corpuses of these funds are not very large. This, according to the company, is because of the lack of marketing support in the overseas markets. It is, hence, looking at a partner that can provide it with marketing support it in the overseas markets. Currently, UTI AMC manages assets worth $200 million under its offshore funds.

 

Life Insurance Corporation, Punjab National Bank, State Bank of India and Bank of Baroda are the promoters of UTI AMC, holding 25% stake each in it. The promoters are looking at diluting a total of 26% stake in the asset management company to a strategic partner.

 

The asset management company is also open to making acquisitions in the mutual fund market. The fund house, however, would go in for an acquisition only if it comes at a right price. There have been indications that a few asset management companies have been in trouble since mid 2008.

 

UTI AMC has also tied up with Coopers Wealth Creators and Tower Infotech to provide investment opportunities to the employees and business associates of Tower Infotech under the UTI Retirement Benefit Pension Fund.

 

UTI AMC has assets worth Rs 49,754 crore under management as on March 2009.


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UTI AMC to Divest 26% Stake to Strategic Partner In Three Months

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