UTI Asset Management Company, a leading provider of asset management services, catering to a diverse group of individual and institutional investors through a wide variety of equity and debt funds, has filed the DRHP with SEBI on 14/01/08 to enter the capital market with an IPO of 4.85 crore equity shares of Rs 10 each, through an offer for sale at a price to be decided through 100% book building process.
It's four sponsors and the selling shareholders are State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda. The offer comprises a reservation of 4.85 lakh equity shares to the employees of the company and the offer to the public is 4.80 crore equity shares. The dilution is about 60%
The shares are proposed to be listed on BSE and NSE. The global coordinators and BRLMs to the offer are JM Financial, Citigroup, Enam Securities and Karvy Computershare. The BRLMs to the offer are Goldman Sachs, UBS Securities, ICICI Securities, SBI Capital and CLSA India.
UTI Mutual Fund has targeted to increase asset under management to Rs 40,000 crores by the end of this financial year. The proposed IPO is planned to set up a holding company which will have shareholding in UTI AMC, UTI Bank, UTI Securities, UTI Investor Services and UTI Investment Advisory. It also proposes to expand its business activities.
The company and its predecessor, Unit Trust of India have been active in the asset management industry in India for more than 40 years, after having established the first mutual fund in India. It has a pan India presence with representatives in 455 of India's 604 districts, with an extensive network of 79 UTI financial centres, independent financial advisors, banks and other distributors, as well as offices overseas.
The company, along with its subsidiaries, manages domestic mutual funds, as well as provides portfolio management services and manages overseas funds, venture capital and private equity funds. Its total assets under management (AUM) stands at Rs 49,541 crores as of September 30, 2007. Based on the AUM in the domestic mutual funds as of December 31, 2007, it is the second largest mutual fund provider in India.
The company currently manages 76 domestic equity, balanced/hybrid, income and liquid mutual funds. Its domestic funds had AUM of Rs 45,002 crores, as of September 30, 2007, constituting approximately 9.4% of the total AUM invested in mutual funds in India and making it the third largest fund provider.
The company also provides portfolio management services to approximately 320 clients. It manages offshore and foreign institutional investor funds (including a co-branded fund with Shinsei Bank of Japan), as well as venture capital and private equity funds. As of September 30, 2007, its portfolio management - overseas, venture capital and private equity funds had total AUM of Rs 4,539 crores.
For the year ended March 31, 2007, the company posted total income of Rs 409.60 crores and net profit of Rs 155.23 crores as against total income of Rs 392.09 crores and a net profit of Rs 135.70 crores for FY06. For the six months ended September 30, 2007, the company posted an income of Rs 203.51 crores and a net profit of Rs 72.71 crores.