Report
EUR 88.49
For Business Accounts Only
UTIAMC is the second largest asset management company (AMC) in India by total AUM and the eight largest by mutual fund quarterly average AUM (QAAUM), as of Jun 2020.
Unit Trust of India (UTI) started as a joint initiative of the Government of India and the RBI in 1964. It launched its first scheme in 1964. In Feb 2003, following the repeal of the UTI Act, 1963, UTI was split into two separate entities. One was the Specified Undertaking of the UTI and the other was the UTI AMC. UTI AMC was sponsored by a clutch of public sector entities namely, SBI, PNB, BoB and LIC. In 2010, T Rowe Price acquired a 26% stake in the company.
Despite its long history and strong shareholding, its financial performance has been lacklustre with earnings lagging AUM growth. AUM growth in turn has consistently lagged the industry growth resulting in UTI AMC losing market share.
The much delayed IPO is being undertaken now for the domestic shareholders to comply with the orders of the regulator, SEBI.
Our previous coverage of the IPO:
UTI Asset Management Pre-IPO - Well passed its remote glory days
UTI Asset Management IPO - Probably Not cheap enough
UTI Asset Management’s (UTIAMC) shareholders aim to raise around US$300m by reducing their stake via the company’s Indian IPO.UTIAMC is the second largest asset management company (AMC) in India by total AUM and the eight largest by mutual fund quarterly average AUM (QAAUM), as of Jun 2020.
Unit Trust of India (UTI) started as a joint initiative of the Government of India and the RBI in 1964. It launched its first scheme in 1964. In Feb 2003, following the repeal of the UTI Act, 1963, UTI was split into two separate entities. One was the Specified Undertaking of the UTI and the other was the UTI AMC. UTI AMC was sponsored by a clutch of public sector entities namely, SBI, PNB, BoB and LIC. In 2010, T Rowe Price acquired a 26% stake in the company.
Despite its long history and strong shareholding, its financial performance has been lacklustre with earnings lagging AUM growth. AUM growth in turn has consistently lagged the industry growth resulting in UTI AMC losing market share.
The much delayed IPO is being undertaken now for the domestic shareholders to comply with the orders of the regulator, SEBI.
Our previous coverage of the IPO:
UTI Asset Management Pre-IPO - Well passed its remote glory days
Underlying
UTI Asset Management Co Limited
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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