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.
ICICI Prudential Asset Management Company has set a price band of Rs 2,061- Rs 2,165 per share for its Rs 10,600-crore initial public offering (IPO) that will open on Friday. At the upper end of the band, the country's largest asset manager will command a valuation of Rs 1.07 trillion.
Largecap equity funds remain suitable for conservative and moderate risk-taking investors seeking relatively stable returns.
Major fund houses report a sharp rise in online transactions, driven by changing investor habits, distributor behaviour, and fast-growing fintech platforms.
Shares of asset management companies (AMCs) have rallied in the last 3-4 sessions due to clarity on regulatory changes in total expense ratios (TER) and expectations that it won't upset profits much in the long run. HDFC AMC has gained over 12 per cent in the last four sessions, while Nippon AMC and UTI AMC are up around 5 per cent. Aditya Birla Sun Life (ABSL), the only other listed AMCs, has risen more than 2.3 per cent in the last four sessions.
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The market regulator is wielding an unprecedented level of control over how mutual funds operate, delaying new launches and dictating investment strategy, frustrated insiders in the embattled industry say.
UTI Asset Management Company will float an initial public offer by March-end 2008 to help its sponsors State Bank of India, Life Insurance Corporation, Punjab National Bank and Bank of Baroda -- offload up to 50 per cent stake.
UTI Asset Management Company plans to aggressively use social media and wireless technology for mobile phones to reach out to investors, a senior company official said.
NSE's Ramakrishna and ING Vysya Bank's Bhandari front runners for the post.
The country's biggest mutual fund, UTI Mutual Fund, on Monday announced the launch of its new scheme 'UTI-Dividend Yield Fund', which will invest in 60-70 high dividend yield stocks.
UTI Asset Management Company plans to acquire an IT company to provide services as a registrar and transfer agency.
UTI Bank, the country's third largest private lender, on Monday said the board of directors have approved a proposal to change its name to Axis Bank.
UTI Asset Management Company (UTI AMC), India's oldest mutual fund, is in advanced stages of discussions to divest 26 per cent to a strategic partner.
Despite recent underperformance, MNC funds have delivered over longer time frames.
The Bombay high court has stayed the Central Information Commission's order on the applicability of the Right to Information Act 2005 on UTI Asset Management Company. UTI Mutual Fund and UTI Trustee company had filed a writ petition challenging the CIC order.
R H Patil was on Thursday appointed chairman of UTI Asset Management Company, the country's largest mutual fund.\n\n
UTI Asset Management Company, the country's fourth-largest mutual fund, is reviewing its proposed initial public offering in view of the turbulence in the global financial markets and the meltdown in Indian equities. The management is having a rethink on the IPO because of the bearish sentiment prevailing in the markets and a lack of investor appetite, according to a source familiar with the development.
The competitive intensity in the mutual fund (MF) industry is moving beyond scheme performance, cost structures, and distribution. In recent months, several fund houses have rationalised exit loads applicable on redemptions.
The fund is being set up in association with two off-shore partners -- HSH Nordbank, (HSH) Germany and Noor Financial Investment Company of Kuwait. HSH Nordbank is a major financier in the transportation sector especially in shipping and aviation. In India, it has participated in debt financing for the modernisation of the Delhi airport. Noor is the financial arm of NIG Group, a conglomerate.
The asset manager is yet to resolve the impasse surrounding the payment of pension to its erstwhile employees who had opted for voluntary retirement in 2003.
The BSE Sensex plunged by about 35 per cent in the last six months. The benchmark index which was over 20,000 level in January, is currently hovering around 13,000. Pre-IPO placement that was intended to offload about 11 per cent of the post diluted shares has also been put on hold, sources said pointing out that the company would revisit its capital raising plan once the market condition improves.
The government on Thursday cleared the long-awaited sale of the UTI Asset Management Company to three state-owned banks and the LIC at a price of Rs 1,237 crore.
In an interview to Business Standard on the eve of the UTI bank's rechristening to Axis Bank, its head honcho P Jayendra Nayak, talks about his vision for the bank in the next two years.
The IPO is an offer for sale of 38 million shares by SBI, BOB, LIC, PNB and T Rowe Price. Barring T Rowe and PNB, the others are selling stake to comply with Sebi norms.
The restructuring of UTI, which started seven years ago when the country's oldest mutual fund failed to meet redemption obligations, is nearly complete.
Unit Trust of India Mutual Fund, which commenced operations at the beginning of this month, is targeting to double its Assets Under Management to Rs 30,000 crore (Rs 300 billion) in the next 12 months, chairman and managing diector M Damodaran said.
By contrast, the fraud enabled Raju's kin and aides to make hundreds of crores, charges CBI.
Indian asset management companies (AMCs) are likely to see a hefty spike in their valuations, after the last week's 5 per cent equity stake sale by Reliance Mutual Fund to US-based hedge fund Eton Park.
Companies featuring in the Next 500 list are mostly mid-sized and termed as the 'small wonders' by the magazine.
Backed by their strong physical presence across the country, UTI Mutual Fund and SBI Mutual Fund (MF) have managed to mobilise a higher proportion of their total assets under management (AUM) from towns and villages than their peers. Data compiled by Nuvama Institutional Equities shows that UTI MF and SBI MF are the only two major fund houses with over a fifth of their AUM coming from areas beyond the top 30 cities (referred to as B-30). UTI MF tops the chart with 23.8 per cent of its assets belonging to B-30 centres, followed by SBI MF with 21.2 per cent B-30 assets. The industry average stands at 17 per cent.
The improving outlook for the power sector has caught the interest of dividend yield funds. In the first four months of the current financial year (2023-24, or FY24), five of the six largest dividend yield funds have shown a notable increase in their exposure to stocks within the power sector. Some have even introduced new stocks to their portfolios.
UTI's legacy and brand recognition, together with a robust distribution network and access to public sector money, could work in its favour, and help it command a premium
M Damodaran, chairman and managing director of UTI Asset Management Company, and administrator of UTI's specified undertaking, on Wednesday assumed the office of the CMD of Industrial Development Bank of India as a temporary measure.
UTI, SBI, Reliance MF promote SIPs with low threshold. However, there are several hurdles. Mutual fund investments require the investor to have a PAN -- a big deterrent when it comes to tapping small and marginal investors. A big fear is that given the fickle nature of the stock market, rural investors might easily get scared when there is a downturn in the market.
M Damodaran took a bow as Sebi chief after many bold initiatives during his 3-year tenure.
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