UTI AMC IPO to be launched in next 6 months- 08.10.2019

The UTI AMC is planning for IPO in the next 6 months and started the preparation of appointing investment bankers.

UTI AMC was incorporated on November 14, 2002, and commenced operations from February 1, 2003. UTI AMC is today a household name in India and has a wide portfolio to suit the varied needs of investors supported by industry-led best practices, long-term vision, and shareholder values.

With 150 branches, 47,000 highly trained IFAs, 320 Chief Agents and Business Development Associates and over 1 crore investor accounts, UTI AMC is one of the leading financial institutions with a pan Indian presence.

As of 30.07.2019, the company is currently having an AUM of 159764 Crore.

Two mutual funds i.e. HDFC AMC and Nippon India Mutual Fund( erstwhile RNAM) are already listed on the bourses.

As per Economic Times, the UTI AMC may get a valuation of Rs. 12000-13000 cr and they are looking to raise Rs. 2500-3000 cr from IPO.

Let us see how this valuation is faired up with listed AMCs.

Company Price Mcap(cr) AUM(cr) Mcap/AUM
Nippon 282 17,314 2,09,484 8%
HDFC 2610 55,509 3,75,560 15%
UTI 750-800 9500-10143 1,59,764 6-6.35%

The UTI AMC is currently available at Rs.750-800 range in the unlisted market, which translates into the valuation of Rs. 9500 to 10143 cr. At Mcap/AUM multiple of 6%, the UTI AMC is the cheapest AMC among all.