Mumbai, Jan 11: UTI Asset Management Company Limited, a leading provider of asset management services in India catering to a diverse group of individual and institutional investors through a wide variety of equity and debt funds, has filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an Initial Public Offering of 48,500,000 equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent Book-Building Process.
Its four sponsors and the selling shareholders were the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda, according to a release issued here today.
The offer also comprises a reservation of not less than 485,000 equity shares for subscription by eligible employees and the offer to the public of 48,015,000 equity shares. The equity shares were proposed to be listed on the National Stock Exchange of India Ltd. and the Bombay Stock Exchange Ltd.
Of the total net offer, not less than 50 per cent shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, out of which five shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15 per cent of the net offer would be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35 per cent of the net offer would be available for allocation on a proportionate basis to Retail Individual Bidders.
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 equalled Rs 49,541.80 crore, as of September 30, 2007. Based on the Asset Under Management (AUM) in the domestic mutual funds as of December 31, 2007, it is the second largest mutual fund provider in India, according to the Association of Mutual Funds in India (AMFI). The Company had the largest client base among mutual fund providers in India, with 8.1 million client accounts, approximately. It has a high concentration of equity and balanced/hybrid funds; and had the second highest market share for equity funds (10.0 per cent) and the highest market share for balanced/hybrid funds (41.9 per cent) in India as on November 30, 2007. Its income and liquid funds, on a combined basis, had the fourth highest market share (7.1 per cent), according to Value Research.
The Company currently manages 76 domestic equity, balanced/hybrid, income and liquid mutual funds. Its domestic funds had AUM of Rs 450,026 million, as on September 30, 2007, constituting approximately 9.4 per cent of the total AUM invested in mutual funds in India and making it the third largest fund provider, according to AMFI.