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UTI Asset Management seeks government approval for IPO
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India’s fifth-largest mutual fund manager UTI Asset Management Co. Ltd has revived its plans to go public and sought approval from the Ministry of Finance to float the proposed IPO, media reports said.

The company may look at offering 25 per cent equity shares to the public, as part of its efforts to give some of its existing promoters an option to exit.

“We feel IPO is the preferred route. We have sought an approval from the finance ministry,” Leo Puri, CEO, UTI AMC, told Mint. He added the company is hopeful to get the approval and launch the IPO this time.

The news was first reported by the Press Trust of India.

UTI had earlier planned to come up with an IPO in 2008. However, it had to drop the plan due to adverse market conditions despite having regulatory clearances.

UTI AMC, which runs the country's oldest fund house UTI MF, was carved out of the erstwhile Unit Trust of India (UTI) in February 2003. At that time, UTI was bifurcated into Specified Undertaking of Unit Trust of India (SUUTI) and UTI MF.

At present, State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB) and LIC own controlling stake in UTI Mutual Fund on behalf of government of India.

While SBI, PNB, BoB and LIC jointly hold 74 per cent stake in the fund house, with each of them presently holding a 18.5 per cent stake, remaining 26 per cent stake is with the Baltimore (US)-based asset management firm T Rowe Price International Ltd, which had bought it in November 2009.

At the end of June 30, UTI MF had an average asset under management of around $15 billion.

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