UTI MF yet to decide on IPO timing
UTI Mutual Fund, which is planning to tap the capital market, today said it is yet to decide on the timing of the initial public offer — the first ever by a fund house in India.
“Nothing has been decided as of now,” UTI MF Chairman and Managing Director U K Sinha said when the IPO would hit the market.
The Draft Red Herring Prospectus (DHRP) was filed with SEBI in January and the offer was expected to be launched by end of FY’08.
The company is understood to be currently looking at a private placement in the region of 20 per cent of the equity capital for price discovery before the IPO.
On the delay in the process, Sinha said, “This has been due to a variety of factors which cannot be spelt out”.
UTI MF is the third largest fund house in terms of assets under management (AUM) after Reliance and ICICI Prudential.
Post pre-IPO placement and the IPO, the four sponsors of UTI MF, State Bank of India, LIC, PNB and Bank of Baroda, would dilute 50 per cent stake in the company.
