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Will the UTI AMC list at a moderate premium or discount on October 12?

The Rs 2,160-crore public issue of UTI AMC witnessed 2.31 times subscription, the lowest among IPOs launched this year.

UTI Asset Management Company has finalised its IPO price at Rs 554 per share and is ready to list equity shares on October 12.

The second-largest asset management company in India in terms of total AUM is expected to see either flat or subdued listing despite pricing the issue at discount to listed peers, experts feel.



The recent outflow from mutual funds, subdued response to SIP and tepid subscription to the IPO could be key reasons for the flat-to-subdued listing, experts reasoned.

The Rs 2,160-crore public issue of UTI AMC witnessed 2.31 times subscription, the lowest among IPOs launched so far this year. HNIs' reserved portion had not seen full subscription (93 percent) against QIBs at 3.34 times and retail 2.3 times.

"UTI AMC IPO got a subdued response. Investor might have concerns about the recent outflow of AUM and subdued response for SIP of the mutual fund industry. Given the moderate response for the issue and the recent trend of equity mutual fund outflow, a listing of UTI AMC could be subdued," Jaikishan Parmar, Senior Equity Research Analyst at Angel Broking told Moneycontrol.

Equity-oriented mutual funds saw net outflows for the third consecutive month, but the pace of outflow has slowed down significantly from the previous month. Equity-oriented mutual funds witnessed a net outflow of Rs 734.4 crore during September, against Rs 4,000 crore outflow seen in August.

"We are expecting a flat listing of UTI AMC," Astha Jain, Senior Research Analyst at Hem Securities said.

UTI AMC is the second-largest asset management company in India in terms of total AUM and the eighth -largest asset management company in India in terms of mutual fund QAAUM as of June 2020. The company also had the largest share of its monthly average AUM attributable to B30 cities of the top ten Indian asset management companies by QAAUM.

The company provides discretionary PMS to the Employees' Provident Fund Organization (EPFO), the Coal Mines Provident Fund Organisation (CMPFO), the Employees' State Insurance Corporation (ESIC), the National Skill Development Fund (NSDF) and to HNIs, Non-Discretionary PMS to Postal Life Insurance (PLI), and Advisory PMS to various offshore and domestic accounts.

Source – Moneycontrol.com

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