UTI AMC
Mainboard₹2,160 Cr issue
-11.51%
Listing gain over issue price
Issue size
₹2,160 Cr
1 lot at cut-off
₹14,958
Lot size
27shares
Open
29 Sep 2020
Close
01 Oct 2020
Allotment
07 Oct 2020
Listing
12 Oct 2020
Listing performance
Issue price
₹554
Listed at
₹490.25
Listing-day close
₹476.60
Latest price
₹817.05
Close on 23 Oct 2026
Listing gain
-11.51%
Return since issue
+47.48%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2020 – 01 Oct 2020
- Listing date
- 12 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹554 per share
- Lot size
- 27 shares
- Total issue size
- ₹2,160 Cr
- ISIN
- INE094J01016
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- UTI Tower, 'Gn' Block,, Bandra-Kurla Complex, Bandra (East),, Mumbai 400051, Maharashtra, India, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,16,36,124 | — | — |
Application size
Minimum 27 shares per lot, in multiples, at ₹554
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 27 | ₹14,958 |
| Retail (max) | 13 | 351 | ₹1,94,454 |
| S-HNI (min) | 14 | 378 | ₹2,09,412 |
| S-HNI (max) | 66 | 1,782 | ₹9,87,228 |
| B-HNI (min) | 67 | 1,809 | ₹10,02,186 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,16,36,124
Anchor portion
₹645 Cr
at ₹554 per share
Valuation and performance
Valuation at offer price
₹554 per share
| Metric | Pre-issue | Post-issue |
|---|
About UTI AMC
UTI Asset Management Company Limited (UTI AMC) is the second largest AMC in India by Total AUM as of June 30, 2020. Incorporated in 2002 and converted to public limited company in 2007, it serves a diverse group of individual and institutional investors through multiple fund products and services. The company manages domestic mutual funds through UTI Mutual Fund (which it manages under an Investment Management Agreement), provides portfolio management services (PMS) to institutional clients and high net worth individuals, manages retirement solutions through UTI Retirement Solutions Limited, and manages offshore and alternative investment funds through subsidiary entities. The company is professionally managed and does not have an identifiable promoter. It operates through multiple business segments including domestic mutual fund management, portfolio management services, alternative investment funds, and retirement solutions. The company has invested in technology infrastructure and maintains a presence across B30 cities in India.
Company Analysis
from RHPUTI Asset Management Company Limited is a professionally managed asset management company providing domestic mutual funds, portfolio management services, retirement solutions, and alternative investment fund management.
UTI Asset Management Company Limited (UTI AMC) is the second largest AMC in India by Total AUM as of June 30, 2020. Incorporated in 2002 and converted to public limited company in 2007, it serves a diverse group of individual and institutional investors through multiple fund products and services. The company manages domestic mutual funds through UTI Mutual Fund (which it manages under an Investment Management Agreement), provides portfolio management services (PMS) to institutional clients and high net worth individuals, manages retirement solutions through UTI Retirement Solutions Limited, and manages offshore and alternative investment funds through subsidiary entities. The company is professionally managed and does not have an identifiable promoter. It operates through multiple business segments including domestic mutual fund management, portfolio management services, alternative investment funds, and retirement solutions. The company has invested in technology infrastructure and maintains a presence across B30 cities in India.
Asset managementMutual fundsPortfolio management servicesRetirement solutionsAlternative investment funds
Objects of the Issue
- Offer for Sale by Selling Shareholders ₹21,598.84 million p.23
- Listing of Equity Shares on Stock Exchanges p.89
- Divestment by Selling Shareholders ₹21,598.84 million p.89
- Not explicitly stated in this section of the document
- Initial public offering by way of offer for sale by existing shareholders p.306
Issue Structure
- Total Issue
- ₹21,598.84 million
- Fresh Issue
- 0
- Offer for Sale
- 38,987,081 Equity Shares aggregating to ₹21,598.84 million
- Price Band
- ₹552 to ₹554 per Equity Share
- Lot Size
- 27 Equity Shares and in multiples of 27 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue primarily from management fees calculated as a percentage of Assets Under Management (AUM). For the three-month period ended June 30, 2020, management fees represented 58.8% of total consolidated income (₹1.6 billion). For fiscal year ended March 31, 2020, management fees represented 88.3% of total consolidated income (₹7.9 billion). Additional revenue is earned from performance fees and other income sources. As of June 30, 2020, 48.7% of Domestic Mutual Fund Closing AUM was invested in fixed income securities, 50.8% in equity shares, and 0.4% in gold. The company also earns fees from portfolio management services (₹6,970.5 billion PMS AUM as of June 30, 2020, with 84.9% attributable to EPFO mandate).
Business Segments
Provides mutual fund schemes to domestic individual and institutional investors through UTI Mutual Fund
Manages portfolio for institutional clients and high net worth individuals; manages EPFO mandate managing 55.0% of total EPFO corpus
Manages retirement and pension schemes through UTI Retirement Solutions Limited
Manages venture capital and private equity funds through UTI Capital and other subsidiaries
Management of domestic mutual fund schemes including income, liquid/money market, equity, and hybrid funds with direct distribution and third-party channels
Discretionary and non-discretionary portfolio management services provided to institutional clients including EPFO, CMPFO, PLI, and other entities
Management of pension funds through UTI Retirement Solutions Limited (UTI RSL), a wholly-owned subsidiary, serving as pension fund manager for the National Pension System
Advisory services and fund management through UTI International and its subsidiaries in Mauritius and Singapore for overseas clients investing in Indian securities
Manages 43 open-ended mutual fund schemes covering equity, hybrid, income, liquid and money market categories for individual and institutional investors through multiple distribution channels including UFCs, IFAs, direct distribution, and banks/distributors
Provides discretionary and advisory portfolio management services to institutional clients, HNIs, and government entities (EPFO, ESIC, CMPFO, NSDF) managing individual stocks, cash, fixed income, debt, and structured products
Manages National Pension System (NPS) retirement funds through UTI Retirement Solution Ltd (RSL), including the largest income tax-notified retirement fund (UTI Retirement Benefit Pension Fund) with approximately 189,000 teachers and other micro-pensioners
Manages offshore mutual funds and alternative investment funds distributed through offices in London, Guernsey, Dubai and Singapore for offshore investors seeking to invest in India
Manages alternative investment funds targeting the HNI segment with customized investment strategies
Manages equity funds (active and passive), hybrid funds, income funds, and liquid/money market funds for individual investors, corporate and institutional investors, banks, trusts, and NRIs
Offers Discretionary and Non-Discretionary PMS and research-based Advisory PMS for both domestic and overseas clients, including management of institutional pension fund mandates from EPFO, CMPFO, ESIC, and PLI
Manages pension funds for Central and State Government employees and citizens under the National Pension System (NPS) through UTI Retirement Solutions Limited subsidiary
Manages offshore and foreign portfolio investor funds for offshore investors wanting to invest in India, including UTI India Dynamic Equity Fund, UTI India Balanced Fund, and UTI Indian Fixed Income Fund
Manages venture capital funds, private debt funds, and other alternative investment funds through subsidiaries UTI Venture Funds Management Company and UTI Capital
Management of UTI Mutual Fund schemes; fees charged as percentage of Average Asset Under Management (AUM) on weekly basis
Portfolio management services to clients of the Wealth Management Division; fees charged based on audited portfolio values
Service as Point of Presence (PoP) under NPS architecture; provides pension fund management services to subscribers
Management of Private Equity and Venture Funds through wholly owned subsidiary UTI Venture Funds Management Company Private Limited
Administration and marketing of Mauritius-domiciled offshore funds and domestic mutual fund schemes in overseas markets through UTI International Limited
Manages domestic mutual fund schemes across equity, hybrid, income, liquid/money market and passive categories
Provides portfolio management services to institutional clients and high net worth individuals; includes assets under advisory services
Manages retirement funds for individuals and manages funds under Pension Fund Regulatory and Development Authority (PFRDA) regulations
Manages offshore investment funds for international and institutional investors
Manages alternative investment funds including venture capital and structured products
Manages domestic mutual fund schemes including active equity funds, hybrid funds, income funds, passive funds, and liquid/money market funds for individual and institutional clients.
Provides portfolio management and advisory services to high-net-worth individuals and institutional investors, including managing mandates from government entities such as EPFO, ESIC, and CMPFO.
Manages National Pension System (NPS) contributions from government employees and voluntary participants through UTI Retirement Solutions Limited (UTI RSL), which manages 11 NPS schemes.
Markets overseas funds through wholly owned subsidiary UTI International Limited, a Guernsey-registered company with offices in London, Dubai, Guernsey and Singapore.
Manages alternative investment funds and venture capital funds through wholly owned subsidiaries UTI Capital Private Limited and UTI Venture Funds Management Company Private Limited.
SWOT Analysis
Strengths
- • Second largest AMC by Total AUM with largest B30 city presence(p.22)
- • Professionally managed without identifiable promoter, enabling objective governance(p.1)
- • Diverse fund product portfolio across multiple asset classes and investor segments(p.22)
- • Strong backing from major financial institutions as sponsors(p.5)
- • Large distribution network with direct and intermediary channels(p.43)
- • Significant government business relationships providing stable revenue(p.46)
- • Strong digital capabilities generating significant online sales(p.44)
- • Established brand and operational history as a public sector mutual fund(p.69)
- • Highest B30 city concentration among top 10 AMCs(p.151)
- • Strong brand heritage and pan-India presence(p.152)
- • Independent pure-play asset manager with no competing business lines(p.152)
- • Lowest customer complaint ratio in industry(p.153)
- • Largest pension and retirement fund manager with mandates from EPFO, ESIC, CMPFO and NSDF(p.154)
- • Strong equity fund performance with 92.3% of AUM outperforming benchmarks(p.154)
- • Extensive distribution network covering 697 districts with strong B30 presence(p.153)
- • Large institutional client base representing 54.5% of domestic mutual fund AUM(p.153)
- • Leading market position with significant AUM(p.157)
- • Extensive distribution network across India including remote areas(p.171)
- • Strong investment track record with multiple award-winning funds(p.170)
- • Long institutional history as India's first mutual fund(p.157)
- • Large customer base with 10.9 million Live Folios(p.157)
- • Significant institutional mandates including EPFO, CMPFO and ESIC(p.173)
- • Robust digital transformation and technology infrastructure(p.156)
- • Strong professional management and governance structure with 8 independent directors(p.205)
- • Experienced and stable senior management with long tenure in the organization(p.210)
- • Diversified revenue streams from multiple asset management services(p.236)
- • Significant asset base and investments across multiple vehicle types(p.252)
- • Established history and brand recognition in asset management(p.317)
- • Second largest by total AUM with diversified product portfolio(p.317)
- • Significant B30 cities presence relative to peers(p.317)
- • Strong distribution network with exclusive BDA and CA presence(p.317)
- • Professional management with strong Government backing through sponsors(p.317)
- • Large investor base and market share(p.317)
- • Large and diversified AUM base with institutional and retail presence(p.322)
- • Strong household savings tailwind supports industry and company growth(p.323)
- • Growing share of systematic investment plans (SIPs) indicates stable recurring revenue(p.329)
- • Significant growth in Pension Fund business with long-term locked-in capital(p.327)
- • High-margin management fee business model with AUM-based revenue(p.322)
Weaknesses
- • Significant decline in domestic mutual fund AUM, particularly in debt funds(p.24)
- • Substantial exposure to defaulted debt securities, particularly DHFL(p.30)
- • Widespread underperformance in income and hybrid funds vs. benchmarks(p.29)
- • High concentration of AUM in top few funds across all categories(p.29)
- • Market share erosion from 8.2% to 5.4% despite AUM doubling(p.29)
- • Heavy reliance on single large mandate (EPFO) for PMS income(p.38)
- • Recurring regulatory compliance failures and SEBI observations(p.31)
- • Pending show-cause notices from SEBI on India Debt Opportunities Fund(p.33)
- • Significant litigation pending with quantifiable and unquantified contingent liabilities(p.34)
- • Significant IT system weaknesses and modernization challenges(p.44)
- • Heavy dependence on a small number of large institutional clients(p.56)
- • Recent regulatory compliance failures including KYC lapses(p.42)
- • Employee misconduct incidents and compliance gaps(p.48)
- • Labor unrest and disputes from employee associations(p.48)
- • Loss of government business eligibility post-IPO if sponsor shareholding falls below required threshold(p.46)
- • Declining equity and income fund AUM impacting revenues(p.154)
- • Significant expense ratio to income at 61.2% in FY2020, up from 53.1% in FY2018(p.155)
- • Eighth largest by domestic mutual fund QAAUM despite being second by total AUM(p.152)
- • Heavy reliance on passive fund mandates from EPFO(p.154)
- • Net profit declining from ₹4.1 billion (FY2018) to ₹2.8 billion (FY2020)(p.150)
- • Concentration of institutional PMS business with limited large clients(p.174)
- • Credit risks from debt portfolio exposure to distressed debtors(p.162)
- • Decline in domestic mutual fund AUM due to COVID-19(p.175)
- • Dependency on T. Rowe Price Group for management of certain investment strategies(p.192)
- • Pending transfer of corporate office property registration(p.181)
- • High employee benefit expenses representing significant cost base(p.223)
- • Dependence on UTI Mutual Fund as primary revenue source(p.236)
- • Concentration risk with investments in mutual funds and offshore funds(p.252)
- • Significant decline in Domestic Mutual Fund QAAUM due to COVID-19(p.320)
- • Declining profitability trend across three-year period(p.319)
- • Heavy dependence on management fees from AUM with competitive pressure(p.321)
- • Operational disruptions from COVID-19 lockdown affecting service delivery(p.321)
- • Concentration risk from top performing funds driving majority of AUM(p.322)
- • Performance underperformance in income and certain equity/hybrid funds(p.323)
- • Exposure to credit defaults in debt portfolio affecting fund performance(p.323)
- • High employee benefit expenses increasing as percentage of revenue(p.324)
- • Heightened regulatory risk from reduction in government sponsor shareholding(p.322)
Opportunities
- • Industry expected to grow at healthy CAGR of 18% in QAAUM through FY2025(p.22)
- • Industry revenues and net profits projected to grow at double-digit CAGRs(p.22)
- • Expansion of geographic footprint in B30 cities with existing leadership position(p.22)
- • Potential to expand distribution capabilities and product innovation(p.40)
- • Demographic growth and financial inclusion driving mutual fund industry expansion(p.54)
- • Expansion of branch network and reach in smaller cities(p.42)
- • Growth in financial savings and investment products in India(p.56)
- • Increasing investor education and regulatory initiatives supporting market penetration(p.54)
- • Mutual fund penetration in India at only 12% of GDP vs 63% global average(p.140)
- • B30 cities account for only 12.6% of industry AUM but growing share(p.151)
- • Industry AUM expected to grow to ₹52 trillion by March 2025 (18% CAGR)(p.135)
- • Equity AUM projected to grow 22% CAGR to ₹24.7 trillion by March 2025(p.136)
- • SIP investments growing from ₹31 billion (Apr 2016) to ₹79 billion (Jun 2020)(p.151)
- • Individual investor AUM growing 17.8% CAGR with 68% in equity funds(p.151)
- • Growing demand for passive funds with EPFO 15% allocation to ETFs(p.115)
- • Expansion of bank distribution channel partnerships(p.156)
- • Growth in PMS business through institutional pension fund mandates(p.156)
- • Expansion of offshore business and UCITS funds(p.156)
- • Growth in alternative investment funds through private debt opportunities(p.156)
- • Digital distribution expansion through fintech and payments platforms(p.156)
- • Growth opportunity in NPS market with low penetration(p.172)
- • Expansion of portfolio management and wealth management services to clients(p.236)
- • Growth in National Pension System (NPS) through registered POP service(p.236)
- • International expansion through established offshore subsidiaries(p.228)
- • Significant growth potential in underserved B30 cities market(p.317)
- • Growing institutional business and retirement solutions(p.319)
- • Expansion of digital initiatives and remote service capabilities(p.321)
- • Potential for passive fund growth with low fee competitiveness(p.319)
- • Expansion of Portfolio Management Services with government mandate growth(p.329)
- • Growing digital adoption and online transaction channels(p.330)
- • International expansion opportunities through overseas subsidiary(p.326)
- • Pipeline of new alternative investment funds to be launched(p.326)
- • Increasing proportion of financial savings in household savings creating market expansion(p.323)
Threats
- • Ongoing COVID-19 pandemic adversely affecting AUM and market liquidity(p.24)
- • Volatility and declines in Indian equity markets impacting fund performance(p.24)
- • Recent credit crisis in India causing fund defaults and market challenges(p.36)
- • Interest rate increases adversely affecting fixed income fund valuations(p.38)
- • Intense competition in asset management reducing market share and pricing power(p.29)
- • Shift in customer preferences from active to passive funds reducing fee income(p.29)
- • SEBI regulations reducing expense ratios and fee income across fund categories(p.39)
- • Regulatory requirement for SEBI approval on all new schemes with potential delays(p.31)
- • Risk of investment management agreement termination by UTI Mutual Fund trustees(p.37)
- • Regulatory changes affecting fund categorization and scheme comparability(p.41)
- • Intense competition from better-resourced and diversified financial institutions(p.55)
- • COVID-19 pandemic impact on operations, AUM, and customer behavior(p.52)
- • Regulatory changes to mutual fund taxation regime reducing investor attractiveness(p.54)
- • Dependence on third-party intermediaries and distribution channels vulnerability(p.43)
- • Economic slowdown and market volatility affecting AUM growth(p.54)
- • Liquidity and redemption risks from concentrated customer base(p.56)
- • Reliance on third-party service providers with potential service disruption risks(p.43)
- • COVID-19 pandemic causing economic contraction of 5% in FY2021(p.143)
- • Government stamp duty of 0.005% on mutual fund purchases from July 1, 2020(p.143)
- • Regulatory pressure on expense ratios limiting profitability(p.137)
- • Debt fund outflows due to IL&FS and NBFC crises with limited recovery expected(p.114)
- • Retail participation heavily influenced by market performance and sentiment(p.143)
- • Competition from insurance products and alternative investments(p.144)
- • SEBI-mandated minimum ticket size increase for PMS from ₹2.5m to ₹5m(p.144)
- • Low financial literacy limiting mutual fund adoption(p.144)
- • Intense competition from larger diversified financial institutions(p.176)
- • Competition for qualified talent in fund management and research(p.176)
- • Market volatility and adverse investment performance impacts(p.177)
- • Regulatory risk from uncertain and evolving regulatory environment(p.176)
- • COVID-19 pandemic impacts on business continuity and customer behavior(p.175)
- • Reputational risk from third parties using UTI brand name(p.180)
- • Liquidity risk in debt portfolio from low trading volumes(p.177)
- • Regulatory changes and SEBI compliance requirements affecting asset management operations(p.236)
- • Market volatility affecting investment valuations and asset values(p.223)
- • Foreign exchange fluctuation risks from international operations(p.224)
- • Ongoing uncertainty from COVID-19 pandemic impacting AUM and investor behavior(p.320)
- • Dependency on Indian economic growth and market performance(p.319)
- • Industry-wide SIP stoppages and market volatility reducing flows(p.320)
- • Regulatory fee caps limiting pricing power(p.321)
- • Increased operating costs without corresponding revenue growth(p.321)
- • Equity and debt market volatility impacts AUM, fees, and performance(p.323)
- • Regulatory cap on management fees reduces revenue potential(p.324)
- • COVID-19 pandemic impacts markets, valuations, and redemptions(p.323)
- • Slowdown or decline in securities market directly reduces mutual fund industry growth(p.323)
- • Decline in household savings rate would adversely impact business growth(p.323)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| State Bank of India | Selling Shareholder | 18.24% | — |
| Life Insurance Corporation of India | Selling Shareholder | 18.24% | — |
| Bank of Baroda | Selling Shareholder | 18.24% | — |
| Punjab National Bank | Selling Shareholder | 18.24% | — |
| T. Rowe Price International Ltd | Selling Shareholder | 26.00% | — |
| State Bank of India (SBI) | Promoter/Sponsor | 18.24% | — |
| Life Insurance Corporation of India (LIC) | Promoter/Sponsor | 18.24% | — |
| Bank of Baroda (BOB) | Promoter/Sponsor | 18.24% | — |
| Punjab National Bank (PNB) | Promoter/Sponsor | 18.24% | — |
| UTI Trustee Company Private Limited (TRP) | Promoter/Principal Shareholder | 26.00% | — |
| State Bank of India (SBI) | Sponsor/Promoter | — | — |
| Life Insurance Corporation of India (LIC) | Sponsor/Promoter | — | — |
| Punjab National Bank (PNB) | Sponsor/Promoter | — | — |
| Bank of Baroda (BOB) | Sponsor/Promoter | — | — |
| T. Rowe Price Group, Inc. | Major shareholder (through subsidiary T. Rowe Price International Ltd.) | — | — |
| State Bank of India (SBI) | Sponsor/Institutional Shareholder | — | — |
| Life Insurance Corporation of India (LIC) | Sponsor/Institutional Shareholder | — | — |
| Bank of Baroda (BOB) | Sponsor/Institutional Shareholder | — | — |
| Punjab National Bank (PNB) | Sponsor/Institutional Shareholder | — | — |
| T. Rowe Price Group Inc. (TRP) | Shareholder | 26.0% | — |
| State Bank of India | Promoter/Sponsor | 18.24% | — |
| Life Insurance Corporation of India | Promoter/Sponsor | 18.24% | — |
| Bank of Baroda | Promoter/Sponsor | 18.24% | — |
| Punjab National Bank | Promoter/Sponsor | 18.24% | — |
| T. Rowe Price International Limited | Major Shareholder | 26.00% | — |
| State Bank of India | Selling Shareholder | — | — |
| Life Insurance Corporation of India | Selling Shareholder | — | — |
| Bank of Baroda | Selling Shareholder | — | — |
| Punjab National Bank | Selling Shareholder | — | — |
| T. Rowe Price International Ltd | Selling Shareholder | — | — |
Leadership
Imtaiyazur Rahman · MD/CEO
Surojit Saha · CFO
Arvind Patkar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
UTI AMC IPO FAQs
What is the lot size of UTI AMC IPO?
The minimum lot size of UTI AMC IPO is 27 shares. One lot costs ₹14,958 at the cut-off price.
When does UTI AMC IPO open and close?
UTI AMC IPO opened for subscription on 29 Sep 2020 and closed on 01 Oct 2020.
What is the listing date of UTI AMC IPO?
UTI AMC IPO listed on 12 Oct 2020.