UTI AMC Lists At 11% Discount On Market Debut

On Monday, shares of UTI AMC listed at a discount of 11 percent to its IPO price at Rs 490.25 per share.

The initial public offering (IPO) of the asset management company, which was open for subscription between 20 September and 1 October, offered shares at a price of Rs 554 per share. The Rs 2,160-crore was subscribed 2.3 times (retail investor portion), the lowest overall subscription among IPOs this year.

The shares had seen full subscription only on the final day of bidding.

The HNI (High Networth Individual) portion of the AMC was not fully subscribed (93 percent) while the QIB (Qualified Institutional Buyers) portion was subscribed 3.3 times.

As per data in the stock exchanges, the UTI AMC IPO received bids for 6.31 crore equity shares compared to the issue size of 2.73 crore shares.

Price trends in the unofficial grey market had shown every indication of discount in pricing.

Brokerages had suggested that despite the AUM (assets under management) growth of UTI, there were challenges on the profitability growth front because their AUM mix being adverse compared to the industry. Some also suggested that the IPO price wasn't cheap.

UTI Asset Management Company is the second-largest AMC in the country in terms of total AUM and also has the largest share of monthly average AUM amongst the top ten Indian AMCs coming from cities beyond the top 30.