SBI, LIC and Bank of Baroda to Sell 8.25% Stake Each in UTI AMC IPO

The June quarter was challenging for domestic mutual fund industry as active equity inflows fell while contributions from SIPs shrunk due to a correction in the stock markets amid volatility.

As part of the offer, State Bank of India, Punjab National Bank, Bank of Baroda, Life Corporation of India, and T Rowe Price International will trim their stake in UTI AMC. SBI, BoB, and LIC will divest 8.25% stake each while T Rowe Price International and PNB will sell 3% each through the issue.

The offer and net offer would constitute at least 30.75% and 30.59% of the post-offer paid-up equity share capital of the company, respectively. According to red herring prospectus, SBI, LIC, BoB, and PNB each hold 18.24% stake while T Rowe has 26% shareholding in UTI AMC.

“The offer consists of an initial public offer of up to 38,987,081 equity shares by the selling shareholders comprising an offer for sale of up to 10,459,949 equity shares by State Bank of India, up to 10,459,949 equity shares by Life Insurance Corporation of India, up to 10,459,949 equity shares by Bank of Baroda, up to 3,803,617 equity shares by Punjab National Bank and up to 3,803,617 equity shares by T. Rowe Price International Ltd,” it said in a statement.