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UTI AMC gets $87 mn from anchor investors as IPO crosses one-fourth mark
Photo Credit: VCCircle

The initial public offering of UTI Asset Management Co Ltd, the country’s eighth-largest mutual fund house by assets under management, crossed the one-fourth mark on the first day on Tuesday.

The offering of 27.35 million shares – excluding the anchor allotment – was covered 26.7% after receiving bids for 7.302 million shares at the end of day one, stock-exchange data showed.

The quota of shares reserved for retail investors was covered nearly 51%. Non-institutional investors such as corporate houses and affluent individuals placed bids for nearly 6% of the shares reserved for them. Institutional investors placed bids for just a handful of shares.

UTI AMC has set the price band for its IPO in the range of Rs 552-554 per share. The IPO will also close on Thursday.

Ahead of the IPO, the company raised Rs 644.64 crore ($87.3 million) on Monday by issuing 11.636 million shares at Rs 554 apiece to anchor investors, a stock-exchange filing shows.

The investors included 15 mutual funds including Aditya Birla Sun Life Mutual Fund, Sundaram MF, Canara Robeco MF, HDFC MF and Kotak MF.

Foreign institutional investors such as Goldman Sachs and Nomura also bought the shares. Local hedge fund Avendus Absolute Return Fund and IIFL Special Opportunities Fund, an alternative investment vehicle that backs companies before and during their IPOs, were among the other investors.

The IPO comprises a share sale by Life Insurance Corp., state-run lenders State Bank of India, Bank of Baroda and Punjab National Bank, and US-based asset management firm T Rowe Price. The selling shareholders will raise a total of Rs 2,152-2,160 crore in the IPO.

UTI AMC will be the third fund house to be listed on the bourses, after HDFC Asset Management Co. and Nippon Life India Asset Management Ltd. HDFC AMC went public in 2018 and Nippon India Mutual Fund the year before.

The company is India’s second-largest asset manager, behind SBI Mutual Fund, after taking into account the money it manages under mutual funds, pension funds, alternative investment funds, the national pension scheme and the assets of the Employees’ Provident Fund Organisation.

However, in terms of quarterly average mutual fund assets under management, it is the eighth-largest AMC. 

Also read: Value Lens: UTI AMC seeks conservative valuation in IPO amid market volatility

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