UTI AMC IPO witnesses lacklustre demand on Day 1; Issue gets subscribed by 27%

UTI AMC plans to raise about Rs2,152.09cr through the IPO.

Sep 30, 2020 09:09 IST India Infoline News Service

Initial Public Offer, IPO
Demand for UTI Asset Management Company (AMC) was dim during the first day of the company's initial public offering (IPO). The company bagged just 27% subscription of the total issue size.

Biddings from qualified institutional buyers (QIB) was nearly nil. A somewhat similar trend was seen from high net-worth individuals (HNIs). It was bidding from retail investors that tapped the UTI AMC IPO to the current subscription.

According to the cumulative data, the UTI AMC IPO bagged bids of 73,02,609 equity shares against the total issue size of 2,73,50,957 equity shares, resulting in just 27% subscription.

As per the data from NSE and BSE, the QIBs subscribed the IPO by zero times. While non-institutional investors which are also referred to as HNIs subscribed the IPO by just 0.06 times. Meanwhile, the retail individual investors (RII) subscribed the IPO by 0.51 times on Day 1.

On NSE, the IPO was subscribed by 0.13 times. While the IPO was subscribed by nearly 0.14 times on BSE.

From the total issue size, 19,393,540 equity shares are reserved for QIB. While at least 5,818,062 equity shares are kept aside for NII. Up to 13,575,479 equity shares are held for retail investors. 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.

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.

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

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