UTI AMC IPO

UTI AMC IPO Details

A subsidiary of the Unit Trust of India (the first company to have dealt with mutual funds in the country); UTI Asset Management Company Ltd. is the second-largest asset management company in India. It is backed by 50+ years of experience in the industry as well as renowned stakeholders like Life Insurance Corporation of India, State Bank of India, Punjab National Bank, Bank of Baroda and Rowe Price Global Investment Services Ltd.

• The total issue size is 38.99mn shares (Rs. 21,520.9 – 21,598.8mn).
• With this IPO, UTI AMC intends to proceed with the OFS (38.99mn shares).

UTI AMC IPO Review/Ratings

Key Competitive Strengths

1. Well-positioned to capitalize on favourable industry dynamics, including the under penetration of mutual fund products.
2. A pure-play independent asset manager with strong brand recognition and a diverse portfolio of funds and services.
3. Multiple distribution channels with a broad and stable client base.
4. Long-term track record of product innovation, consistent and stable investment performance and AUM growth.
5. Established position in retirement solutions through product innovation and large retirement fund mandates.
6. Experienced management and investment teams supported by strong governance structures and human resources programs.
7. Enhanced profitability was driven by the size and product mix.

Risks and Concerns

1. Continued subdued economic growth post-COVID-19 pandemic.
2. A decline in global and domestic equity markets and delayed recovery.
3. Changes in interest rates and defaults.
4. Unfavourable composition of AUM.
5. Intense competition and unfavourable regulation.

Download the UTI AMC IPO Report

UTI AMC IPO Fundamental Analysis

• 18.6% decrease in the revenue from operations from 10505.1 mn in FY19 to 8549.7 mn in FY 20.
• 22.6% decrease in the net profit, from 3528.3 mn in FY 19 to 2730.3 mn in FY 20.
• It is the second-largest PMS provider in India (as of 30th Jun. 2020).
• It is the second-largest AMC in India in terms of total AUM and the eighth largest AMC in India in terms of mutual fund QAAUM (as of 30th Jun. 2020).
• Among the top-10 AMCs, the company also had the largest share of its monthly average AUM attributable to B30 cities.
• Post-IPO, the BOB, SBI, LIC, PNB and T. Rowe shareholding stake will decrease from 98.96% to 68.21%.
• Price to Earnings Ratio (P/E) for FY20 = 23.3
• Debt to Equity Ratio (D/E) for FY20 = 0.1
• Earnings Per Share (EPS) = 23.8
• Return on Equity (ROE) for FY 20 = 10.7%
• Price to Book Ratio (P/B) = 2.5
• Return on Capital Employed (ROCE) = 9.3%

Online Procedure to Apply For UTI AMC IPO

1. Go to the IPO Section => IPO Listing => Open IPO.
2. On tapping UTI AMC IPO, you can directly click on Subscribe to apply or even view the IPO details.
3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
4. Once you select 'Subscribe'. Your bid will be executed.
5. You can check the status of your IPO bid in the IPO Transactions section.