UTI Asset Management Company will go ahead with its initial public offer to raise ₹2,160 crore with each of the current promoter shareholders LIC, SBI, Bank of Baroda and Punjab National Bank and T Rowe Price selling of their holding.
The price band for its ₹10 paid-up equity share has been fixed at ₹552-554 per equity share.
The IPO will open on September 29 and close on October 1. The anchor book will open and close on September 28.
The offer includes a reservation of up to 200,000 shares for eligible employees.
Bids can be made for a minimum 27 equity shares and in multiples of 27 thereafter. This will be the tenth IPO to launch in 2020.
UTI AMC is the second largest in India in terms of total AUM and the eighth largest asset management company in India in terms of mutual fund Quarterly Average Assets Under Management) as of June 30,
The offer consists of an initial public offer of up to 38,987,081 equity shares by the selling shareholders including an offer for sale of up to 10,459,949 equity shares each by SBI, LIC and Bank of Baroda besides Punjab National Bank offering 3,803,617 shares and up to 3,803,617 shares by T. Rowe Price International.
The offer less the Employee Reservation Portion constitutes at least 30.75 per cent and 30.59 per cent of the post-Offer paid-up Equity Share Capital of the Company, respectively.
6% for ESOP
Imtaiyazur Rahman, CEO, UTI AMC, said the fund house has already allocated 6 per cent of shareholding for employees stock option and has already issued about two per cent to employees.
The remaining four per cent will be allocated to eligible employees, if the Government makes 35 per cent free-float mandatory in future, he said.