State Bank of India (SBI), Wednesday declared that it will divest 8.25 per cent in the proposed IPO (Initial Public Offering) of UTI Asset Management Company.At present,they holds 18.25 per cent stake in the muthal fund house.There is three other public sector undertakings are also hold 18.25 per cent each,they are; Life Insurance Corporation,Bank of Baroda and Punjab National Bank.While US-based T.Rowe price also owns 25 per cent.The sources says that LIC,BoB and PNB too are expected to divest 8.25 per cent each in the UTI AMC IPO.
At present,the total dilution in the IPO could be 33 per cent.If there is any fresh component in this issue,it could be lead to further dilution.SBI's proposed 8.25 per cent disinvestment is the exact quantum required to comply with the market regulator Sebi's cross shareholding norms.Rules regarding with Sebi don't permit an entity to hold more than 10 per cent in the single fund house.Now SBI,LIC and BoB operating their own seperate fund houses along with their stake in UTI AMC.
In an exchange notification SBI states that,"Pursuant to the applicable provision on the Sebi regulation,we advise that the executive committee of the central board of directors (ECCB) of the bank at its meeting held today has accorded final approval,for divestment of SBI stake in UTI AMC up to 8.25 per cent through IPO by way..." Before the end of December,the country's seventh-biggest mutual fund house is expected to file it's offer document with market regulator SEBI.
UTI AMC seeks valuations between Rs. 10,000 crore and Rs.13,000 crore in the IPO.
In this year,this issues will be underpinned by a rally in shares of asset managers this year.Shares of HDFC MF and Nippon India MF (formerly Reliance MF) have rallied 122 per cent and 120 per cent respectively in this year also.
At the end of September quarter, UTI MF had assets under management (AUM) of Rs.1.54 trillion, While HDFC MF and Nippon MF manage Rs.3.8 trillion and Rs.2 trillion respectively,this data is provided by industry body Amfi showed.
At present,the total dilution in the IPO could be 33 per cent.If there is any fresh component in this issue,it could be lead to further dilution.SBI's proposed 8.25 per cent disinvestment is the exact quantum required to comply with the market regulator Sebi's cross shareholding norms.Rules regarding with Sebi don't permit an entity to hold more than 10 per cent in the single fund house.Now SBI,LIC and BoB operating their own seperate fund houses along with their stake in UTI AMC.
In an exchange notification SBI states that,"Pursuant to the applicable provision on the Sebi regulation,we advise that the executive committee of the central board of directors (ECCB) of the bank at its meeting held today has accorded final approval,for divestment of SBI stake in UTI AMC up to 8.25 per cent through IPO by way..." Before the end of December,the country's seventh-biggest mutual fund house is expected to file it's offer document with market regulator SEBI.
UTI AMC seeks valuations between Rs. 10,000 crore and Rs.13,000 crore in the IPO.
In this year,this issues will be underpinned by a rally in shares of asset managers this year.Shares of HDFC MF and Nippon India MF (formerly Reliance MF) have rallied 122 per cent and 120 per cent respectively in this year also.
At the end of September quarter, UTI MF had assets under management (AUM) of Rs.1.54 trillion, While HDFC MF and Nippon MF manage Rs.3.8 trillion and Rs.2 trillion respectively,this data is provided by industry body Amfi showed.
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