UTI Asset Management Company, a leading provider of asset management services in India catering to a diverse group of individual and institutional investors through a wide variety of equity and debt funds, has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to enter the capital market soon with an initial public offering (IPO) of 48,500,000 equity shares of Rs 10 each through an offer for sale by the selling shareholders for cash at a price to be decided through a 100% book-building process.
Its four sponsors and the selling shareholders are the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda (which are all controlled by the Government of India).
The offer also comprises a reservation of not less than 485,000 equity shares for subscription by eligible employees and the offer to the public of 48,015,000 equity shares. The equity shares are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.
Of the total net offer, not less than 50% shall be available for allocation on a proportionate basis to qualified institutional buyers, out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the net offer will be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the net offer will be available for allocation on a proportionate basis to retail individual bidders.
The company and its predecessor, the Unit Trust of India have been active in the asset management industry in India for more than 40 years, after having established the first mutual fund in India. It has a national footprint with representatives in 455 of India's 604 districts, with an extensive network of 79 UTI Financial Centres, independent financial advisors, banks and other distributors, as well as offices overseas.
The Company, along with its subsidiaries, manages domestic mutual funds, as well as provides portfolio management services and manages overseas funds, venture capital and private equity funds. Its total assets under management ("AUM") equalled Rs 495,418 million, as of September 30, 2007. Based on the AUM in the domestic mutual funds as of December 31, 2007, it is the second largest mutual fund provider in India, according to the Association of Mutual Funds in India ("AMFI").
The Company currently manages 76 domestic equity, balanced/hybrid, income and liquid mutual funds. Its domestic funds had AUM of Rs 450,026 million, as of September 30, 2007, constituting approximately 9.4% of the total AUM invested in mutual funds in India and making it the third largest fund provider, according to AMFI.
The company also provides portfolio management services to approximately 320 clients. It manages offshore and foreign institutional investor funds (including a co-branded fund with Shinsei Bank of Japan), as well as venture capital and private equity funds. As of September 30, 2007, its portfolio management, overseas, venture capital and private equity funds had total AUM of Rs 45,392 million.
The global co-ordinators and book running lead managers to the Offer are JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited. The book running lead managers to the Offer are Goldman Sachs ( India) Securities Private Limited, UBS Securities India Private Limited, ICICI Securities Limited, SBI Capital Markets Limited and CLSA India Limited.
Source: Moneycontrol.com
Friday, January 11, 2008
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