UTI IPO : UTI AMC’s IPO by year end

UTI Asset Management Company has got all the final approvals to go for the Initial Public Offer. UTI has today said that the its AMC has got in-principle approval from the government and its board. UTI IPO will hit the markets by the end of this finacial year.

The promoters LIC, Punjaba National Bank, SBI, Bank of Baroada who hold 100% in the company have all decided to dilute the holdings amounting to 49% in the company by going the IPO route. All the four promoters have invested in 2005 when UTI was restructured and it would help them to unlock the value and gains from the capital invested in the group.

UTI AMC is raising some fresh money for a massive brand expansion and for a massive technology upgradation.

While the company will sell 49 percent to investors, it will retain its PSU status with sponsors controlling 51 percent. This will make it one of the select fund managers to manage the government’s pension scheme and the national investment fund.