LIC stalls listing of UTI AMC

Moneycontrol BureauLife Insurance Corporation (LIC) continues to incessantly delay the much awaited listing of UTI AMC, reports The Financial Express. Due to this, UTI's shareholder meet, scheduled for this week, has been delayed till further notice.Despite receiving a nod for a broad-based listing two weeks ago from its public sector bank stakeholders, namely State Bank of India, Punjab National Bank and Bank of Baroda, UTI AMC will not get listed until its fourth major PSU shareholder, LIC, agrees for a listing.LIC, in light of the constant stalling, may still be keen on acquiring UTI AMC and merging it with its own asset management arm. And with the Finance Ministry - whose nod is essential for UTI's listing - not giving any clarity on an IPO anytime soon, LIC may stall further.SBI, PNB, BoB and LIC hold a share of around 18.5 percent each in UTI AMC. Although, US firm T Rowe Price holds a total stake of 26 percent in the company. The Finance Ministry plans for a listing of a meagre 10 percent, in attempts to trim down the stake of T Rowe Price.Also, since UTI AMC is board managed, T Rowe Price has also agreed to decrease stake as it does not require veto power.Constant boardroom battles have seriously affected UTI AMC in the last few years, which has now slipped to the sixth rank from its earlier fourth rank in terms of its assets under management (AUM). It holds a total of Rs 1.29 lakh crore worth of assets, according to its third quarter results.ICIC Prudential AMC holds the number one spot with around Rs 2.27 lakh crore worth of assets under management.