UTI Asset Management Company is planning to come out with an initial public offer by selling 60 per cent of its holding to the public, its chairman M Damodaran said in Kolkata on Monday.

Damodaran said UTI Mutual Fund had targeted to increase asset under management to Rs 40,000 crore (Rs 400 billion) by the end of this financial year.

The UTI chief said the size and time of the IPO had not yet been decided.

"There is nothing specific about it (IPO). It is too early to say this is the road which we will travel. It is only in thinking stage," he said.

Asked to comment on the model of the proposed IPO, he said it was being 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 plus UTI Institute of Capital Market.

"UTI brand is a very strong brand and the best way to retain it is to have a holding company to hold on its shares. The holding company will have around 40 per cent and the rest will be held by public. Why should it belong to institutions of India, it will belong to the people of India," the CMD said.