Applicants who applied for the Rs 2,160 crore-initial public offer (IPO) of UTI AMC (asset management company) can check their allotment status on either BSE website or Link Inktime website. The allotment status will be announced around October 7 or October 8, ahead of the expected listing on October 12.
An applicant tracking BSE website (link here) can check on "Equity" box and select his/her "Issue Name" in the dropdown menu (UTI AMC). After that, the person needs to type his/her "Application Number" in the box, "Permanent Account Number (PAN No.)" and click on "Search" button.
Investors may also check the status on Link Inktime India (link here) and follow the same steps as mentioned above.
The three-day IPO of UTI Asset Management Company (AMC) opened for subscription on September 29 with a price band of Rs 552-Rs 554 per equity share. The offer was subscribed 2.3 times, that is, it received bids for 6.31 crore equity shares as compared to the issue size of 2.73 crore shares. The HNI portion of the IPO remained under-subscribed at 93 per cent.
UTI AMC is the second-largest asset management company in India in terms of total assets under management (AUM) and the eighth-largest asset management company in the country in terms of domestic mutual fund Quarterly Average Assets Under Management (QAAUM) as of June 30, 2020. UTI AMC has four sponsors, viz; SBI, LIC, PNB, and BOB. That apart, global asset management company, T. Rowe Price International Ltd, is also one of its major stakeholders holding a 26 per cent stake in the company.
Most analysts had given 'Subscribe' rating to the IPO on hopes that the mutual fund industry is likely to benefit from continued inflow, particularly in the equity segment, attributed to the rising preference for financial assets within household savings among retail investors, increase in risk appetite and rising penetration in B30 cities.
"UTI AMC witnessed a steady healthy 15 per cent QAAUM CAGR over the last four years led by strong distribution franchise, sticky client base, strengths in managing retirement (2nd highest), and PMS funds. However, lower yields on passive/alternate funds, higher cost structures, and current pandemic led headwinds would cap near term return profile," analysts at Prabhudas Lilladher had said in an IPO note.
At a higher price band (Rs 554), LKP Securities valued the stock at 25.7(x)FY20 earnings. Comparing with peers like HDFC AMC and Nippon AMC which are trading at 35.2(x) and 35.0(x)FY20 earning, respectively due to higher return on equity (ROE). "We still believe that UTI AMC is lucrative and recommend subscribing to the offer," they had said.