UTI AMC IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP

Let’s have a detailed review of the company and analytics of the UTI AMC Limited IPO release date, IPO offer price, subscription, UTI AMC IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

UTI AMC IPO will be listed on 12th Oct 2020, check out the live share price by clicking on the below link.

Also, Check Live Share Price Performance of – Mazagon Dock & Likhitha Infra here

Summary of UTI AMC IPO

They cater to a diverse group of individual and institutional investors through a wide variety of funds and services. They manage the domestic mutual funds of UTI Mutual Fund, provide portfolio management services (“PMS”) to institutional clients and high net worth individuals (“HNIs”), and manage retirement funds, offshore funds and alternative investment funds.

Their history and track record in the mutual fund industry, strong brand recognition, distribution reach, performance and client relationships provide a platform for future growth. They have a national footprint and offer their schemes through a diverse range of distribution channels.

This company is a professionally managed company and does not have an identifiable promoter. The lead manager to the issue is Kotak Mahindra Capital Company Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, DSP Merrill Lynch Limited, ICICI Securities Limited, JM Financial Limited, SBI Capital Markets Limited. The Registrar to this issue is KFin Technologies Private Limited. 

UTI AMC IPO Dates / Launch Date

The opening and the closing date of UTI AMC IPO is Sep 29, 2020 and Oct 1, 2020.

UTI Asset Management IPO Subscription 

The shares subscribed by the public will be updated here.

UTI AMC IPO Allotment Status

Here, you can find the Allotment Status of this IPO. Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

UTI AMC IPO Listing Date

Find the dates below on basis of allotment, refund, listing and more:

UTI AMC IPO Price Band / Cash Price

The face value of each share is Rs.10,and the cash price of the IPO is Rs.552 to Rs.554. 

UTI AMC IPO Equity Size

This Initial Public Issue of 38,987,081 Equity Shares of Rs.10 each for cash at a price of Rs.552 to Rs.554 per equity share aggregating to Rs.2,159.88 Cr.

UTI Asset Management IPO Share Offering

Issue: The Fresh Issue of 38,987,081 Equity Shares by their Company of Rs.10 each at a price of Rs.552 to Rs.554 per equity share aggregating to Rs.2,159.88 Cr,

Offer for Sale : Offer for sale of up to 10,459,949 Equity Shares by SBI, up to 10,459,949 Equity Shares by LIC, up to 10,459,949 Equity Shares by BOB, up to 3,803,617 Equity Shares by PNB and up to 3,803,617 Equity Shares by TRP aggregating up to Rs.2,159.88 Cr.

UTI AMC IPO – Live Performance

The listing date of this IPO is Oct 12, 2020. You can check the live performance of this IPO here.

UTI AMC IPO Grey Market Premium

The UTI AMC IPO Grey Market Premium price is Rs 55-60, the Kostak rate is 400 and the Subject to Sauda is 900. 

UTI AMC Limited – Company Overview

They and their predecessor (Unit Trust of India) have been active in the asset management industry for more than 55 years, having established the first mutual fund in India. They are a professionally managed company led by their Board of Directors and a dedicated and experienced management team.

For purposes of the SEBI Mutual Fund Regulations, their four sponsors are the State Bank of India (“SBI”), Life Insurance Corporation of India (“LIC”), Punjab National Bank (“PNB”) and Bank of Baroda (“BOB”) (collectively, the “Sponsors”), each of which has the Government of India as a majority shareholder. T. Rowe Price Group, Inc., a global asset management company, is their other major shareholder (through its subsidiary T. Rowe Price International Ltd. (“TRP”)).

UTI AMC Distribution Channels

Their distribution network includes 163 UTI Financial Centres (“UFCs”), 273 Business Development Associates (“BDAs”) and Chief Agents (“CAs”) (46 of whom operate Official Points of Acceptance (“OPAs”)) and 33 other OPAs, most of which are in each case located in B30 cities.

Their IFAs channel includes approximately 51,000 Independent Financial Advisors (“IFAs”) as of September 30, 2019. They believe that their BDA and CA network distinguishes them from other asset management companies in India, as their BDAs and CAs, who are engaged by them on an exclusive basis primarily in B30 cities, allow them to efficiently and effectively develop, maintain and service their relationships with their distributors and investors.

Their banks and distributors (“BND”) channel involves distribution arrangements with domestic and foreign banks, as well as with national and regional

UTI Asset Management – Investment Philosophy

Their investment philosophy endeavours to deliver investment outperformance against benchmarks and competitors, and their investment strategy is to have a balanced and well-diversified portfolio within each of their funds, which are subject to internal norms governing asset allocation, sectoral allocation and security selection.

Their domestic equity mutual fund management team includes 19 members, with an average of more than 11 years of experience with them, while their domestic fixed income mutual fund management team is composed of ten members, with an average of over 15 years of experience with them. Many of their equity mutual funds have demonstrated strong performance through economic cycles. For

UTI AMC Schemes

They manage 178 domestic mutual fund schemes, comprising equity, hybrid, income, liquid and money market funds as of September 30, 2019. Their Domestic Mutual Fund QAAUM was Rs.1,542.3 billion as of September 30, 2019, which accounted for approximately 6.0%, or the seventh largest amount, of the total QAAUM invested in all mutual funds in India as of September 30, 2019, according to CRISIL.

Set forth below is the breakdown of their Domestic Mutual Fund QAAUM (in absolute amounts and as a percentage of the total) by category of mutual funds

UTI AMC Limited: Business strategies

• Drive superior investment performance across their categories of funds.
• Increase geographical reach and expand distribution channels.
• Actively pursue additional partnership opportunities.
• Continue to develop PMS, offshore and alternative funds businesses.
• Leverage technology and digitisation to enhance organisational efficiency and cost optimisation, improve customer acquisition and experience, and ensure data security.
• Continue to attract, retain and develop human capital.

UTI AMC Ltd – Financial Statements

On the basis of Standalone statement:

Earnings per Equity Share (in Million)

From FY 2018-2019 to FY 2019-20, as per the Restated Financial Statements

• Their consolidated total income equalled Rs.2.7 billion and Rs.2.4 billion for the three -month periods ended June 30, 2020 and 2019, respectively, and Rs.8.9 billion, Rs.10.8 billion and Rs.11.6 billion for the fiscal years ended March 31, 2020, 2019 and 2018, respectively.
• Thier consolidated profit after tax equalled Rs.1.0 billion and Rs.0.7 billion for the three -month periods ended June 30, 2020 and 2019, respectively, and Rs.2.8 billion, Rs.3.5 billion and Rs.4.1 billion for the fiscal years ended March 31, 2020, 2019 and 2018, respectively.

UTI Asset Management IPO – Promoters

This company is a professionally managed company and does not have an identifiable promoter. 

List of Related Parties (Key Managerial Personnel)

• Imtaiyazur Rahman, Whole-time Director and Chief Executive Officer
• Arvind Patkar, Company Secretary and Compliance Officer
• Surojit Saha, Chief Financial Officer

Interest in promotion of the Company

None of their Directors have any interests in the promotion or formation of their Company.

Interests of Directors in property of their Company

None of their Directors have any interest in any property acquired or proposed to be acquired of their Company or by
their Company in the preceding three years.

UTI Asset Management IPO Offer Details or Issue Details

UTI AMC IPO Issue Object

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and the sale of up to 38,987,081 Equity Shares by the Selling Shareholders in the Offer.

• Further, the listing of Equity Shares will enhance their Company’s brand name and provide liquidity to the existing Shareholders.
• Their Company expects that the proposed listing will also provide a public market for the Equity Shares in India.
• The Selling Shareholders will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes thereon. Their Company will not receive any proceeds from the Offer.

UTI AMC Limited: Key Strength

• Well-positioned to capitalise on favourable industry dynamics, including the underpenetration of mutual fund products.
• Pure-play independent asset manager with strong brand recognition and diverse portfolio of funds and services.
• Multiple distribution channels with wide reach and broad and stable client base.
• Long-term track record of product innovation, consistent and stable investment performance and AUM growth.
• Established position in retirement solutions through product innovation and large retirement fund mandates.
• Experienced management and investment teams supported by strong governance structures and human resources programs.
• Enhanced profitability driven by their size and product mix.

UTI AMC IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

They believe that some of the qualitative factors which form the basis for computing the Offer Price are as follows:

• Well-positioned to capitalise on favourable industry dynamics, including the underpenetration of mutual fund products.
• Pure-play independent asset manager with strong brand recognition and diverse portfolio of funds and services.
• Multiple distribution channels with wide reach and broad and stable client base.
• Long-term track record of product innovation, consistent and stable investment performance and AUM growth.
• Established position in retirement solutions through product innovation and large retirement fund mandates.
• Experienced management and investment teams supported by strong governance structures and human resources programs.
• Enhanced profitability driven by their size and product mix.

UTI AMC IPO – Quantitative Factors

• Price to Earnings (P/E) ratio in relation to Price band of Rs.552 to Rs.554 per Equity Share

UTI AMC Limited: Competitive Peers

UTI AMC IPO Lead Managers

UTI Asset Management IPO Registrar to Offer

Other Details:

• Statutory Auditor – G. D. Apte & Co., Chartered Accountants
• Legal Counsel to the Company – Cyril Amarchand Mangaldas
• Bankers to the Company – Axis Bank Limited

UTI AMC IPO Review by Top 10 Stock Brokers

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