UTI AMC – the 2nd largest asset management company in India (in terms of Total AUM) and the 7th largest asset management company in the country (in terms of mutual fund QAAUM) is planning to raise INR 2160 Cr via IPO [all OFS]
UTI AMC: Company Profile & Business
Incorporated in the year 2002, UTI AMC is in the business of managing the domestic mutual funds of the UTI Mutual Fund.
The company provides portfolio management services (PMS) to institutional clients and high net worth individuals (HNIs) like Postal Life Insurance, National Skill Development Fund, Employee Provident Fund Organisation, and manages retirement funds, offshore funds, and alternative investment funds.
UTI Asset Management Company and its predecessor (Unit Trust of India) have been active in the asset management industry for more than 55 years, having established the first mutual fund in India.
UTI AMC: Sponsors
The sponsors of the company are the State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank (PNB), and Bank of Baroda (BOB).
UTI AMC: Network
The Company’s distribution network includes the following as of September 30, 2019.
- 163 UTI Financial Centres (UFCs),
- 273 Business Development Associates (BDAs)
- Chief Agents (CAs) (46 of whom operate Official Points of Acceptance (OPAs)
- 33 other OPAs
The company also has approximately 51,000 Independent Financial Advisors (IFA).
UTI AMC: Portfolio
UTI Asset Management Company manages 178 domestic mutual fund schemes, comprising equity, hybrid, income, liquid, and money market funds as of September 30, 2019.
UTI AMC: Strengths
- Well-positioned to capitalise on favourable industry dynamics, including the under penetration of mutual fund products
- A pure-play independent asset manager with strong brand recognition and a diverse portfolio of funds and services
- Multiple distribution channels with wide reach and broad and stable client base
- Long-term track record of product innovation, consistent and stable investment performance, and AUM growth
- Established position in retirement solutions through product innovation and large retirement fund mandates
- Experienced management and investment teams supported by a strong governance structures and human resources programs
- Enhanced profitability “driven by the size and product mix”
Company Promoters
UTI AMC is a professionally managed company and does not have an identifiable promoter in terms of SEBI.
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
CONCLUSION
Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on UTI AMC IPO
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