UTI AMC listing price on the (NSE) National Stock Exchange happened today and that too at Rs 500. This was at almost 10% discount to its offer price. On BSE (Bombay Stock Exchange) the stock opened for trading at Rs 490.25,12% discount to its offer price of Rs 554. At a current market price of Rs 504 the company is trading at a market cap of nearly 6400 Cr. Zee Business Managing Editor Anil Singhvi had clearly indicated that investors should avoid this IPO if they are looking for listing gains.
UTI AMC is the third asset management company to get listed on the stock exchanges after Nippon Life India Asset Management and HDFC AMC.
UTI AMC, saw a subdued response to its IPO, the Rs 2,160 cr IPO got subscribed 2.3 times, the lowest overall subscription among IPOs this year. The initial public offer received bids for 6,31,02,348 shares against 2,73,50,957 shares on offer. UTI AMCs HNI portion was not subscribed fully (93%) while QIB and retail portions were subscribed 3.3 times and 2.3 times respectively.
Incorporated in 2002, UTI AMC, the second largest asset management company in India in terms of total AUM has 4 sponsors (State Bank of India, LIC, Punjab National Bank and Bank of Baroda) and one global investor T Rowe Price International as shareholders.
The Rs 2,160-crore IPO was an offer for sale by the above mentioned shareholders. Hence all the issue proceeds had gone to the shareholders.
UTI AMC manages the domestic mutual funds of UTI Mutual Fund, provides portfolio management services (PMS) to institutional clients and high net worth individuals (HNIs), and manage retirement funds, offshore funds and alternative investment funds. As of June 2020, its total QAAUM for domestic mutual funds was over Rs 1.3 lakh crore, while the other AUM was Rs 8.49 lakh crore.
(Authored by Rahul Kamdar)