UTI AMC raised Rs 645 crores on the day of release of IPO

Business Finance

A company can opt for many sources to raise funds but IPO is referred to as the best source of raising funds. A company generally go for IPO when it wants to generate or raise funds on a very large basis as it can result in gaining hundreds of crores in just a single day.

The same has happened with UTI Asset Management Company as it went for IPO and yesterday it was the first day of its opening. This opening has made them hundreds of crores and to be more precise they have earned Rs 645 crore. This money is raised from anchor investors.

In IPO a company lists a huge number of shares and allows the public and investors to buy them and in this money is raised. These shares are equity shares so the buyers who buy these shares are in some proportion become owners of the company too. UTI Asset Management Company in its IPO allotted shares of around Rs 554 and it went to the maximum of 567 too. The total number of shares of this company were 1,16,36,124.

In this price range of the shares, the company was able to raise around Rs 644.64 crore from investors.

Many anchor investors were part of this investment and with the helo of them, only this huge amount of money was raise. The investors included many big investors like ICICI Prudential Mutual Fund (MF), HDFC MF, Aditya Birla Sunlife MF, HDFC Life Insurance company, Max Life Insurance Co Ltd, Reliance Capital Trustee, Morgan Stanley, HSBC, Goldman Sachs, and Nomura Singapore.

The IPO of UTI AMC involves an offer of 3,89,87,081 value shares or a 30.75 percent stake by existing investors.

State Bank of India (SBI), Life Insurance Corporation (LIC), and Bank of Baroda are offering to sell 1,04,59,949 offers each, while Punjab National Bank (PNB) and T Rowe Price International will offload 38,03,617 offers each.

At present, SBI, LIC, Punjab National Bank, and Bank of Baroda hold 18.24 percent stake each in UTI AMC. The US-based T Rowe Price claims a 26 percent stake in the organization.

The organization has likewise saved 2 lakh value shares for qualified workers.

The organization has fixed a value band of Rs 552-554 an offer for its first sale of stock (IPO) that will close on October 1.

At the upper finish of the value band, the IPO would bring Rs 2,160 crore.

This will be the third AMC to get recorded on the stock trades after Nippon Life India Asset Management and HDFC AMC.

Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India Pvt Ltd, ICICI Securities, JM Financial, and SBI Capital Markets are the book running lead directors to the offer.

The portions of the organization are proposed to be recorded on BSE and NSE.