UTI Asset Management IPO Review

UTI Asset Management IPO Review.  As the initial public offering season continues to grow, UTI Asset Management Company has launched its IPO on 29 September 2020. This IPO is considered one of the largest asset management companies in India and its IPO is sure to be in the interest of investors. Here’s a look at all the details of the IPO.

How to request an Initial public offer of UTI AMC?

You can easily request this UTI asset management IPO through UPI.

Visit Groww to apply for UTI IPO:

  • First, you have to visit the Groww website and then go to IPO (log into your account). There you can see the list of all open IPOs.
  • Choose UTI AMC IPO and click “Apply”. This IPO is already registered on September 29, 2020.

How to check UTI AMC initial public offer (IPO) Allotment Status:

Option 1: BSE (Bombay Stock Exchange) Website:

  •  Visit BSE website
  •  Then Select Equity
  •  After that, Choose the IPO
  •  Then, type your Application number and after that type your Pan Number

 Option 2: In Demat Account

  •  Login in to your Demat account / Trading account or just call your Broker
  •  After login, check the status that the stock is credited in your account or not

 Option 3: In Bank Account

  •  At first, login into your bank account
  •  Then, check that the amount is debited or not.

Option 4: KFintech Website

  • Visit KFintech Website
  • Select the UTI AMC IPO
  • After that, select the options named Application Number, Pan Number, or Demat number
  • Then fill the details in the selected heads such as Application Number, Pan Number, or Demat number.

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UTI AMC IPO Complete detail

Subscription Dates29th September 2020 – 1st October 2020
Price BandRs. 552 – 554 / share
Fresh issueNil
Offer For Sale38,987,081 shares (Rs. 2,152.1 – 2,159.9 crore)
Total IPO size38,987,081 shares (Rs. 2,152.1 – 2,159.9 crore)
Minimum bid (lot size)27 shares
Face Value Rs. 10 per share
Retail Allocation35%
Listing OnBSE, NSE

Here are the complete details of UTI AMC IPO:

 The subscription date of UTI AMC IPO starts from 29th September 2020 – 1st October 2020. They offer 38,987,081 quantity of shares worth Rs 2,152.1 – 2,159.9 crore. Well, the total size of the IPO is 38,987,081 shares. The minimum bid is fixed by them, which is 27 shares. So, you have to purchase a minimum of 27 shares. After that, the face value of one share is fixed which is Rs 10. This is available on both BSE ( Bombay Stock Exchange) and NSE ( National Stock Exchange).

Company Information – UTI Asset Management Company Limited

According to CRISIL Report, UTI Asset Management Company Ltd. is India’s second-largest asset management company in terms of total assets under management as of 30 June 2020. In terms of Quarterly Average Assets Under Management (QAAUM), UTI AMC is the 8th largest in the country. (Movie) This company has been active in the asset management sector for over 55 years and has the distinction of being the first mutual fund in India. UTI AMC has four main sponsors:

  • State Bank of India (SBI)
  • Punjab National Bank (PNB)
  • Life Insurance Corporation of India (LIC)
  • Bank of Baroda (BOB)

 

UTI AMC has an extensive distribution network consisting of 163 UTI Financial Centers (UFC), 257 Business Development Associates (BDA), and Principal Agents (40 of which are Official points Acceptance (OPA)) and another 43 Official points Acceptance. It also has more than 53,000 IFA Independent Financial Adviser (IFA) networks.

The company manages the domestic mutual funds of the UTI Mutual Fund, provides portfolio management services (PMS) to High Network Individuals (HNI) and institutional investors, manages pension funds, offshore funds, and alternative investment funds.

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  1. Strength of UTI AMC

  • Well-positioned to take advantage of the favorable dynamics of the industry, including the lack of product penetration of mutual funds.
  • Multiple distribution channels with a broad reach and a large and stable customer base.
  • Product innovation, steady and stable return on investment, and AUM’s long-term development history.
  • Established status in retirement solutions through product innovation and an excellent pension fund mandate
  • Expert investment and management teams supported by strong management structures and human resources programs.
  • Better profitability, driven by its size and product mix.
UTI IPO REVIEW
UTI Asset Management IPO Review
  1. Objects of the offer

  • UTI AMC proposes to use the net proceeds of this issue to finance the following items:
  • Increase the company’s brand
  • Create a public market for its stocks in India
  • Provide liquidity to existing shareholders.
  1. Risk factors

  • The company’s profit and income are highly dependent on the value and structure of its managed assets, which may decline due to factors beyond its control, such as falls in Indian stock markets, changes in interest rates, depreciation and withdrawal, Changes in the structure of AUM, decrease in inputs through systematic schemes, etc.
  • Low performance of its portfolio can lead to loss of clients and AUM reduction and consequently to the loss of income.
  • UTI AMC has experienced a steady decline in recent years and may continue to do so, which could adversely affect its business, financial condition, and results of operations.
  • Concentration in your investment portfolio can have a negative effect on your business, financial condition, and results of operations.
  • UTI AMC’s investment performance, income, and profitability could be adversely affected if it fails to identify suitable investment opportunities or if the investment strategy of one of its funds favors its clients.
  • AMC’s business is subject to extensive regulation, including periodic oversight by the SEBI and the Pension Fund Regulatory and Development Authority (PFRDA). Any violation of existing regulations or SEBI or PFRDA comments, or AMC’s failure or delay in obtaining, maintaining, or renewing regulatory approval can expose you to fines and penalties.
  • The company relies on the strength of its brand and reputation, and the activities of 3rd-parties who have the right to use the UTI brand can damage the brand and reputation, which can damage or harm your business.
  • Credit risks related to your fund’s debt portfolio can expose you to significant losses, which could adversely affect AMC’s business, results of operations, and financial condition.
  • The company may revise its rates due to competitive pressures which can reduce its revenues and profitability.

OVERVIEW OF UTI 

For quarter-ended 30-June-20 (In Crores)For quarter-ended 31-March-20 (In Crores)For quarter-ended 31-March-19 (In Crores)For quarter-ended 31-March-18 (In Crores)
Total Assets3,263.423,154.913,013.262,919.25
Total Income271.07890.961,080.891,162.74
Total Expenses147.84545.51589.64617.31
Profit After Tax101.07276.48347.92405.09

 

Here on the above table show, the 3-year data which includes Total Assets, total income, total expenses, and The last one is Profit After Tax. The data given above is in crores. You can understand this easily from the above table and calculate the profit which this company will get in the upcoming years.

 

About the Cashnomic author

Rishabh Shrivastava is a Banker by profession and a tech graduate with a couple of years in Banking and he also holds a good knowledge of investments.

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