UTI AMC falls 5% as co denies reports of stake sale to Tata Group

Shares of UTI Asset Management Company (UTI AMC) fell 4.9 per cent to Rs 819 on the BSE in Wednesday's intra-day trade after the company denied reports of it being in talks with Tata group for a 45 per cent stake sale. 

"We are not aware of any such negotiations / events. Accordingly, we cannot provide any information on sequence of events," UTI AMC said in an exchange filing.

According to reports, Tata AMC plans to acquire the shares held by four public sector undertakings (PSUs) in the fund house that manages assets worth Rs 2.24 trillion. UTI AMC is ranked eighth, while Tata AMC is in 13th position with an AUM of Rs 88,400 crore.

Currently, Punjab National Bank holds 15.22 per cent stake in UTI AMC. Life Insurance Corporation (LIC) of India, State Bank of India (SBI), and Bank of Baroda (BoB) hold 9.98 per cent each. US-based T Rowe Price holds 22.97 per cent. READ MORE

UTI AMC further clarified that the company has not taken any such decision as reported in the news article; and as such, no event has occurred that would have triggered an obligation for the company to make a disclosure.

At 3:00 PM, shares of UTI AMC were trading 4.8 per cent lower at Rs 820 per share, as against a 0.7 per cent rally in the benchmark BSE Sensex. On Tuesday, shares of the company had jumped 15 per cent on the bourses.