Home >Companies >News >SBI to divest 8.5% stake in UTI AMC via IPO
Citigroup and ICICI Securities are among banks selected for UTI Asset Management Co.’s planned IPO (Photo: Mint)
Citigroup and ICICI Securities are among banks selected for UTI Asset Management Co.’s planned IPO (Photo: Mint)

SBI to divest 8.5% stake in UTI AMC via IPO

  • The SBI will divest up to through IPO by way of offer for sale of up to 1,04,59,949 equity shares,
  • UTI AMC is planning to launch an initial public offer (IPO) by the end of this fiscal

NEW DELHI : The State Bank of India (SBI) board on Wednesday approved the lender’s proposal to sell 8.25% stake in UTI AMC.

“The SBI will divest up to through IPO by way of offer for sale of up to 1,04,59,949 equity shares," it said in a filing with the stock exchanges.

SBI, Life Insurance Corporation Punjab National Bank (PNB) and Bank of Baroda (BoB) own 18.5% stake each in UTI AMC.

In October, Bloomberg reported that Citigroup Inc. and ICICI Securities Ltd. were selected as advisers for the planned initial public offering (IPO) of UTI AMC, which is expected to raise about 2,600 crore. Its existing shareholders, according to the report, could sell a combined 30% stake in the proposed offering.

UTI AMC is planning to launch an initial public offer (IPO) by the end of this fiscal.

SBI’s plans to sell its stake in UTI AMC through an IPO follows its decision to sell its stake in its credit cards business SBI Cards and Payment Services Ltd, which recently filed the draft papers for its initial share sale.

The proposed share sale of SBI Cards could be worth as much as 9,600 crore. The IPO will see SBI sell a 4% stake.

As of fiscal year ended 31 March, UTI Mutual Fund had 195 schemes in operation with average asset under management (AAUM) at about 1.60 lakh crore, compared to 1.55 lakh crore in the previous fiscal. The mutual fund unit’s net profit as of fiscal year 2019 remained largely unchanged at 348 crore, compared to 341 crore in the year ago period.

Incorporated in 2002, the company has 150 branches, 47,000 independent financial advisers, 320 chief agents and business development associates and over 1 crore investor accounts, spread across India.

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