UTI Asset Management

IPO Details

Below are key details about the IPO of the Company

• IPO Start Date – 29nd Sep 2020
• IPO End Date – 01st Oct 2020
• IPO Price – INR 552 – 554
• IPO Lot Size – 27
• Minimum investment required – INR 14,958

English Video

Hindi Video

Business Details

UTI Asset Management Company as the name suggest is in Asset Management Business. The products offered by the Company can be divided into below categories

• Asset Class
  • Equity Funds
  • Debt Funds
  • Overnight Funds and Liquid Funds
  • Hybrid Funds
• Exchange Traded Funds
• Solution Based Funds
  • Wealth Builder
  • Child Career planning
  • Tax Saving
  • Retirement planning
  • Core Portfolio Builder
• New Funds Offer

It is backed by popular Government Banks of India like State Bank of India, Punjab National Bank and Bank of Baroda. The Company is also backed by Life Insurance Corporation of India. Along with these public sector Companies T. Rowe Price Group a global asset management Company is major share holder of the Company.

Below are some cool facts about the Company

• 8th largest asset management company in India in terms of mutual fund QAAUM
• 2nd largest in terms of Total AUM
• It has 12% market share based on live folios

Asset Management is main business of the Company. Along with Asset management it also has presence in

• Offshore Business
  • Helps Global entities in investment strategy
• National Pension Scheme
• Alternative Investment Fund
  • is managed by UTI Capital which is subsidiary
• Portfolio management Services
  • The total AUM of our PMS business was ₹4,999.2 billion as of Sep 2019
  • It acts as Portfolio manager for Employee Provident Fund (EPFO)

Financial Snapshot

Below are key financials of the Company for year ending 2020

• Total Income – 855
• Profit for year – 276
• EPS – 21.8
• Book Value – 218
• PE – 25.4

IPO Subscription Status

Below is IPO Subscription status of the Company. I will be updating this section with time.

• QIB – 3.34 times
• NII – 0.91 times
• RII – 2.05 times
• Employee – 1.16 times
• Total Subscription is 02.16 times

Below is meaning of the Key terms used above

• QIB is (Institutes or Mutual Funds like HDFC AMC etc)
• NII is (People bidding for more than 2 lakhs in IPO application)
• RII is (People bidding for less than 2 lakhs)
• Employee and Others are Reserved Quota Investors.

My Opinion

HDFC Asset Management Company was last IPO from this sector. The IPO got very good response and investors were able to get listing gains as well. Partially due to Brand Image HDFC has build for it over the years.

However this time scenario is different. The Financial Sector is under stress due to Corona crisis. So it will become interesting to see how well the QIB responds to the IPO. Their response will set the tune for it.

Since it is one of two Companies managing the EPFO corpus that would give it edge over other Asset Management Companies.