UTI AMC, Mazagon Dock shares surge next day of listing1 min read . Updated: 13 Oct 2020, 12:55 PM IST
- Both UTI AMC and Mazagon Dock shares were listed on stock exchanges on Monday
After making contrasting debut on exchanges in the previous session, shares of both UTI Asset Management Co. Ltd (AMC) and Mazagon Dock Shipbuilders moved higher today. Shares of UTI AMC rose 6% to ₹504 on BSE while Mazagon Dock Shipbuilders also rose 6% to ₹184.20.
Both UTI AMC and Mazagon Dock shares were listed on stock exchanges on Monday. UTI AMC had slumped below its issue price while state-run defence shipbuilder Mazagon Dock had a robust opening day.
On Monday, UTI AMC closed at ₹481.50, at a 13.08% discount to its issue price of ₹554.
The initial public offering (IPO) of the mutual fund company with a price band of ₹552 -554 apiece was subscribed 2.3 times. The three-day sale, which closed on 1 October saw the company raising ₹2,160 crore in the upper price band. Shareholders State Bank of India, Punjab National Bank, Bank of Baroda, Life Insurance Corp. of India and T Rowe Price International sold part of their stakes in UTI AMC via the IPO.
On the other hand, Mazagon Dock had closed at ₹171.95, an 18.5% premium to its issue price of ₹145. Earlier in the day, the stock listed on the exchanges at 48.2% higher over its issue price.
Mazagon Dock was subscribed 157.4 times during its three-day share sale that began on 29 September. The government sold 15.17% stake in the ₹444 crore issue.
Many analysts remain positive on the AMC space. "We are optimistic about the AMC space as asset management, being a fee based business is slated to grow (QAAUM) at an 18% CAGR in the medium term led by overall economic growth, growing investor base and higher disposable income levels. Recent regulatory changes such as revised expense ratios would lower costs for mutual fund investors which should aid in greater retail participation," Centrum Broking had said in a recent note.