UTI AMC IPO is in the business of managing the domestic mutual funds of UTI Mutual Fund, provides portfolio management services to institutional clients and is all set to make a debut in the stock market with an issue size of 2159.88 Cr.
IPO Overview
| UTI AMC IPO Issue Date | 29th Sept- 1th oct 2020 |
| UTI AMC IPO Opening Date | 29th Sept 2020 |
| UTI AMC IPO Face Value | INR 10 per share |
| UTI AMC IPO Price | INR 554 per share |
| UTI AMC IPO Lot Size | 27 Shares |
| Issue Size | 2,159.88 Cr |
| Offer for sale | – |
| Issue Type | Book built Issue IPO |
| Listing At | BSE, NSE. |
| QIB Shares Offered | 3.34 times |
| NII (HNI) Shares | 0.93 times |
| Company Promoters | UTI AMC is a professionally managed company and does not have an identifiable promoter in terms of SEBI. |
Tentative Dates
| UTI AMC IPO opening date | 29 Sept 2020 |
| UTI AMC IPO closing date | 1 Oct 2020 |
| Basis of Allotment | 7 Oct 2020 |
| Initiation of Refunds | 8 Oct 2020 |
| The credit of Shares to Demat | 9 Oct 2020 |
| UTI AMC IPO Listing Date | 12 Oct 2020 |
Industry Overview.
CRISIL expects the mutual fund QAAUM growth to be near-flat for Fiscal 2021. After growing at a CAGR of approximately 18% between March 31, 2015, and March 31, 2020, from ₹11.9to ₹27.0trillion, respectively, the QAAUM as of March 31, 2021, is expected to stay at approximately ₹27.0trillion, mainly due to the effects of the COVID-19 pandemic. In an environment in which the GDP growth is expected to be around 5%, and there is no clear visibility on corporate earnings growth or disposable income levels, fund flows into the mutual fund industry are likely to be limited and the capital markets returns are also expected to remain range bound.
Company Overview
UTI AMC is in the business of managing the domestic mutual funds of UTI Mutual Fund, provides portfolio management services to institutional clients and high net worth individuals like Employee Provident Fund Organisation, National Skill Development Fund, Postal Life Insurance, and manages retirement funds viz. NPS, offshore funds like Shinsei UTI India Fund, and alternative investment funds catering to a diverse group of individuals, institutional investors, banks, trusts, and NRIs.
Objectives Of The Issue
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
- The sale of up to 38,987,081 Equity Shares by the Selling Shareholders.
Financial Statements
| Particulars | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 |
| Total Assets | 31,549.18 | 30,132.63 | 29,192.52 |
| Total Revenue | 8,909.61 | 10,808.94 | 11,627.47 |
| Profit After Tax | 2,764.85 | 3,479.27 | 4,050.91 |
Strengths
- Well-positioned to capitalize on favorable industry dynamics, including the under-penetration of mutual fund products.
- Pure-play independent asset managers with strong brand recognition and a diverse portfolio of funds and services.
- Multiple distribution channels with a wide reach and broad and stable client base.
- Long-term track record of product innovation, consistent and stable investment performance, and AUM growth.
Weakness
- The underperformance of its investment portfolio could lead to a loss of clients and a reduction in AUM and result in a decline in its income.
- It has experienced a consistent decline over the past years and may continue to do so, which could have an adverse impact on its business, financial condition, and results of operations.
- Competitive pressures could cause the company to review its fees, which may reduce its income and profitability.
Company Contact Information
UTI Asset Management Company Ltd
UTI Tower, ‘Gn’ Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai 400051, Maharashtra, India
Phone: +91 22 6678 6666
Email: cs@uti.co.in
Website: https://www.utimf.com/
UTI AMC IPO Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: utiamc.ipo@kfintech.com
Website: https://karisma.kfintech.com/
