UTI AMC plans public offering in September1 min read . Updated: 05 Aug 2020, 11:45 PM IST
- The mutual fund manager plans to capitalize on the strong fundraising momentum in the Indian markets
UTI Asset Management Co. Ltd is planning to hold roadshows for its ₹3,000-crore initial public offering (IPO) expected to be launched in September, two people said on condition of anonymity.
The mutual fund manager plans to capitalize on the strong fundraising momentum in the Indian markets, which was evident in the first two trading days in August, when Axis Bank Ltd, Info Edge (India) Ltd and Alembic Pharmaceuticals Ltd launched their respective qualified institutional placement (QIP) offerings to collectively raise over ₹12,000 crore. On Monday, Bandhan Bank’s promoter entity also sold shares worth ₹10,500 crore in a secondary sale to investors.
“UTI’s initial plan was to close its IPO in fiscal 2020. However, the covid-19 pandemic pushed that plan back by several months. The markets now are very conducive to launch a trade and there is a lot of liquidity chasing quality companies. The roadshows will start this month and the plan is to launch the deal in September," said the first person.
An email query to UTI AMC did not elicit a response. Kotak Mahindra Capital, Axis Capital, Citi and Bank of America are advising UTI on the public offer. UTI’s IPO comes at a time when net inflows into equity mutual funds plunged to a four-year low in June due to the pandemic.