 "tata, tata group")
The Tata Group is assessing whether to bid for UTI Asset Management Company (UTI AMC) following the entry of Jio Financial Services into the mutual funds industry, according to a report by the Economic Times (ET) on Monday. This comes at a juncture when investments in real estate and bullion are on the rise in India.
In addition, several new albeit smaller players like Zerodha Fund House, Helios Capital, and Old Bridge Capital Management have entered the sector.
"The situation today is different with the entry of Reliance, which until now has not shown any interest in bidding for UTI AMC. They may choose a different strategy. However, the Tata Group is closely monitoring the situation and will make a timely decision," an official familiar with the matter was quoted as saying by ET.
Previously, the Tata Group was reportedly in discussions to acquire a majority stake in UTI AMC from four public banks, namely Punjab National Bank, Life Insurance Corporation of India, State Bank of India, and Bank of Baroda. These institutions collectively own a 45 per cent stake in UTI AMC.
However, the talks were unsuccessful after a significant investor in UTI AMC insisted that the institutions must adhere to a formal bidding process. ET now reports that these institutions are expected to invite formal bids and have appointed SBI Capital Markets as the banker for the deal.
As of June 2023, over 40 asset management companies (AMCs) in India managed assets exceeding Rs 43.77 trillion. SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund are the three largest asset managers in the country.
Earlier, Jio Financial Services announced it has appointed KV Kamath, chairman of the National Bank for Financing Infrastructure and Development (NaBFID), to lead its financial services business. The company has also formed a partnership with Blackrock for the venture.
