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UTI Mutual Fund open to acquisition of domestic fund house

UTI Mutual Fund open to acquisition of domestic fund house
PTI
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First Published: Thu, May 14 2009. 06 08 PM IST
Updated: Thu, May 14 2009. 06 08 PM IST
New Delhi: The country’s fourth largest asset manager, UTI Asset Management Company (AMC), on Thursday said it is open to acquisition if some good opportunity is available.
“We can do it ... we are not averse to acquisition,” UTI AMC chairman and managing director U K Sinha said.
The fund house can actively pursue if some good opportunity come up, he said, adding “we have done in past we can do it even today if something good comes up.”
In 2004, he said, UTI acquired IL&FS Mutual Fund which resulted in transfer of Asset Under Management over Rs1,800 crore.
The fund house has comfortable liquidity. There is no immediate need to raise capital, he said.
In April, UTI AMC’s average asset under management increased by Rs4,616.77 crore to Rs54,489.99 crore.
Sinha said the current fiscal would be a difficult year for the industry and there would be consolidation.
Fresh money is not coming in a big way in the market as people are sceptical and cautious, he said.
However, thing would start looking up after the first half, he added.
On stake sale, Sinha said it will divest 26% stake to a strategic partner by August this year.
The decision to divest 26% stake to the strategic partner comes a few months after UTI Asset Management Company deferred its initial public offering owing to uncertain market conditions.
Even the pre-IPO placement that was intended to offload about 11% of the post diluted shares was also been put on hold. About 1.2 crore shares were proposed to be offloaded through pre-IPO placements to strategic partners.
In April, UTI AMC’s average asset under management increased by Rs4,616.77 crore to Rs54,489.99 crore.
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First Published: Thu, May 14 2009. 06 08 PM IST