The UTI Asset Management Company clarified via a stock exchange filing on August 18 that the company is not aware of any development regarding the Tata AMC considering buying a 45 percent stake in it.
Shares of UTI Asset Management Co Ltd had surged as much as 17 percent to a near-four-month high after it was reported that the rival Tata Asset Management Co is set to buy a significant stake in the company.
The stock hit a high of Rs 876.55 - a level last seen on April 27 - and gained 16.9 percent intraday. At 11.50 am, the scrip was trading at Rs 868 on the BSE, up 15.8 percent from its previous close. Year to date, it declined by over 18 percent.
Neither the TV report disclosed where it got the information from, nor the Tata Asset Management commented on the deal. TV reported the deal would make the combined entity the sixth asset largest manager in India.
Tata AMC has an AUM of 85,910 crore, while UTI MF has an AUM of 1,61,394 crore as of March end 2022.
As of June 30, 2022, T Rowe Price holds 22.97 percent stake in the firm, PNB has 15.22 percent, SBI 9.98 percent, BOB 9.98 percent while LIC has 9.98 percent stake.
Given that four government-held companies are likely to sell stake in this deal, many in the know are now questioning whether this deal was structured around the same time as the Air India deal.
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