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Investors of UTI MF to take call on listing in April: PNB chief

The bank has decided to exit from mutual fund PNB Principle from where it is going to get 1.25 billion

Press Trust of India  |  New Delhi 

Investors of UTI MF to take call on listing in April: PNB chief

Investors of the country's oldest mutual fund are likely to take a call on its listing sometime in April, said Sunil Mehta, of National Bank, one of the sponsors of the asset management company. "We are not the sole investors. There (are) 4 more investors. I think a meeting of the investors will take place somewhere in April, that time (a) call will be taken. May be there could be decision on listing," he told of (SBI), National (PNB), of Baroda (BoB) and Corporation of (LIC) hold stake in Mutual Fund on behalf of the central These entities jointly own a 74 per cent stake in the fund house, while the remaining 26 per cent stake is with the US-based investment firm In 2008, Asset Management Co (AMC) deferred its initial public offer (IPO) owning to uncertain market conditions. The fund house had proposed to sell 48 million equity through the IPO. Subsequently, in 2009, all the four sponsors of diluted 6.5 per cent each in favour of MF was created after Parliament passed the Unit Trust of (Transfer of Undertaking & Repeal) Act in 2002 after the flagship US-64 scheme went bankrupt.

Post the Act, the then mighty was bifurcated into Specified Undertaking of Unit Trust of (Suuti), which owns almost 11.8 per cent in and Asset Management Company. The Baltimore-based picked up 26 per cent in in November 2009 by buying 6.5 per cent stake each from the four promoters for $140 million. With regard to other non-core asset sales, Mehta said, "whatever we committed, we have done better than that. We have walked the talk. We have already sold 5.9% stake in We have got Rs 13.21 billion out of stake sale there". The has also decided to exit from mutual fund from where it is going to get 1.25 billion, he said. "So, roughly Rs 14.5 billion we have already disinvested. We will be getting that money. Out of which Rs 13.25 billion we have already received and the remaining Rs 1.25 billion we will be receiving in next few weeks," he said.

First Published: Sun, January 07 2018. 13:42 IST
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