Ajcon Global's IPO report on UTI Asset Management Company
Incorporated as ‘UTI Asset Management Company Private Limited’, on November 14, 2002. UTI Asset Management Company Limited (“UTI AMC”) is the 2nd largest Asset Management Company in India in terms of Total AUM and the 8th largest asset management company in India in terms of mutual fund QAAUM as of June 30, 2020. UTI AMC and its predecessor (Unit Trust of India) have been ac/ve in the asset management industry for more than 55 years. For purposes of the SEBI Mutual Fund Regula/ons, its 4 sponsors are the State Bank of India (“SBI”), Life Insurance Corpora/on of India (“LIC”), Punjab Na/onal Bank (“PNB”) and Bank of Baroda (“BOB”) (collec/vely, the “Sponsors”). T. Rowe Price Group, Inc., a global asset management company, is their other major shareholder (through its subsidiary T. Rowe Price Interna/onal Ltd. (“TRP”)).
Valuation and Outlook
We believe the Company will not get a higher P/E as compared to its immediate listed peers HDFC AMC and Nippon AMC as its peers have equity oriented schemes which has a higher growth potential as compared to debt and liquid schemes managed by UTI. With due consideration to the above and below factors a) well-positioned to capitalise on favourable industry dynamics, including the under penetration of mutual fund products, b) established position in retirement solutions through product innovation and large retirement fund mandates, we recommend to “SUBSCRIBE the issue for listing gains”..