Sparring shareholders throw a spanner in UTI Mutual Fund IPO
The internal bickering at UTI MF is holding up the proposed initial public offer by India’s oldest fund house.
LIC, a key stakeholder, has written to the Department of Investment and Public Asset Management (DIPAM), expressing fears that the UTI AMC IPO might get further delayed, said sources. The insurer wants the department to ask foreign shareholder T Rowe Price to play ball.
T Rowe Price (TRP) had publicly expressed concerns regarding leadership continuity at India's sixth biggest AMC and was pitching for an extension to Leo Puri, which was reportedly opposed by other state-owned shareholders.
Puri’s five-year contract ended in August.
"T Rowe Price is not vetting board proposal to kick-start selection process of new MD and CEO. Appointment of a full-time MD and CEO is critical to the UTI AMC IPO. Delay in IPO will hurt PSU banks looking to divest their stake to raise money," the sources told ETNow.
However, according to a PTI report, UTI Asset Management Company (AMC) has initiated the process for appointment of a new managing director and chief executive.
While LIC, SBI, PNB and BoB own 18.5 per cent each in UTI AMC, US-based T Rowe Price holds 26 per cent stake.
LIC, a key stakeholder, has written to the Department of Investment and Public Asset Management (DIPAM), expressing fears that the UTI AMC IPO might get further delayed, said sources. The insurer wants the department to ask foreign shareholder T Rowe Price to play ball.
T Rowe Price (TRP) had publicly expressed concerns regarding leadership continuity at India's sixth biggest AMC and was pitching for an extension to Leo Puri, which was reportedly opposed by other state-owned shareholders.
Puri’s five-year contract ended in August.
"T Rowe Price is not vetting board proposal to kick-start selection process of new MD and CEO. Appointment of a full-time MD and CEO is critical to the UTI AMC IPO. Delay in IPO will hurt PSU banks looking to divest their stake to raise money," the sources told ETNow.
However, according to a PTI report, UTI Asset Management Company (AMC) has initiated the process for appointment of a new managing director and chief executive.
While LIC, SBI, PNB and BoB own 18.5 per cent each in UTI AMC, US-based T Rowe Price holds 26 per cent stake.
