UTI AMC IPO picks momentum on Day 2; Subscribed by 79% as retail investors, employees show appetite

During the first day of the issue, UTI AMC saw subscription of mere 0.27 times.

Oct 01, 2020 09:10 IST India Infoline News Service

Initial Public Offer, IPO
UTI Asset Management Company (AMC) gained momentum during the second day of the initial public offering (IPO) as retail investors and employees continue to tap the issue. High net-worth individuals (HNIs) and qualified institutional buyers (QIBs) continued to bid at a slower pace.

On Day 2, the maiden issue bagged bids for 2,15,44,407 equity shares compared to the total offer size of 2,73,50,957 equity shares, resulting in 0.79 times subscription.

Data compiled from BSE and NSE showed that retail individual investors (RII) subscribed the IPO by 1.16 times, while employees subscribed the issue by 0.66 times.

Further, the institutional subscriptions stood at 0.48 times, whereas the non-institutional investors subscribed the issue by 0.35 times.

During the first day of the issue, UTI AMC saw subscription of mere 0.27 times.

The company plans to raise about Rs2,152.09cr through the IPO. The issue will be available for subscription till October 01, 2020.

The price band for the IPO is fixed at Rs552 per equity share at the lower end and Rs554 per equity share at the upper end.

Five shareholders are offloading 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.

The IPO has already garnered Rs644.64cr on September 28, through allotment to anchor investors. 

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