Bombay HC directs UTI AMC to include staff liabilities in IPO prospectus

The liabilities could amount to Rs 1,250 crore, with bulk arising out of pension dues to 1,200-odd former employees, as per estimates by staff associations

The Bombay High Court (HC) has directed UTI Asset Management Company (AMC) to include the quantum of contingent liabilities arising because of pension and other dues related to its former and serving officers in its red herring prospectus (RHP) before it hits the market for an initial public offering (IPO).
 

In July, the UTI Retired and VSS Employees Social Association (UTIRAVESA), along with the Officers' Association, filed a writ petition before the HC claiming that the draft RHP of the asset manager’s IPO failed to adequately highlight the contingent liabilities arising out of employee-related dues. The petition has now been