UTI AMC IPO gets oversubscribed by 2.29 times on Day 3 led by robust demand from institutional investors

The IPO was launched on September 29, 2020.

Oct 01, 2020 05:10 IST India Infoline News Service

Initial Public Offering, IPO
UTI Asset Management Company (AMC), the second-largest asset management company in India in terms of Total AUM, got fully subscribed on the final day of its initial public offering (IPO). The IPO witnessed oversubscription of 2.29 times.

According to NSE data, the IPO bagged cumulative bid of 6,26,29,848 equity shares compared to the total issue size of 2,73,50,957 equity shares.

Qualified institutional investors (QIB) showed a strong appetite for the IPO, as they subscribed the issue by whopping 4.46 times. Retail individual investors were also not far away, as the quota saw subscription of 1.37 times.

However, the non-institutional investors (NII) quota recorded subscription of just 71% of the total issue size.

Of the total issue size, 19,393,540 equity shares are reserved for qualified institutional buyers (QIB). While at least 5,818,062 equity shares are kept aside for non-institutional investors (NII). Up to 13,575,479 equity shares are held for retail individual investors (RII). There are some 2 lakh equity shares reserved for eligible employees.

A price band of Rs552 per equity share is fixed for UTI AMC IPO at the lower end. The upper price band stands at Rs554 per equity share.

Notably, five shareholders will be selling their stake in UTI AMC through the issue. These are - state-owned State Bank of India (SBI), Life Insurance Corporation of India (LIC) and Bank of Baroda (BOB) will be selling about 1,04,59,949 equity shares each through the issue. Further, Punjab National Bank (PNB) and T Rowe Price International (TRP) will divest approximately 38,03,617 equity shares each.

Thereby, these shareholders will be entitled to the entire proceeds after deducting the offer expenses.

The IPO was launched on September 29, 2020. 

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