Choice Equity Broking's IPO report on UTI Asset Management Company
UTI Asset Management Company Ltd. (UTI AMC), one of India's oldest AMC, is planning to raise up to Rs. 21,600mn through an IPO, which will open on 29th Sept. and close on 1st Oct. 2020. The price band is Rs. 552 - 554 per share. • The issue consists of only OFS portion. As a result, the company will not receive any proceeds from it.
Valuation and Outlook
At the higher price band of Rs. 554 per share, UTI AMC is demanding a P/E valuation of 23.3x, which is at a discount to the peer average of 35.1x. Considering the above observations and positive macros of the domestic mutual fund industry, we assign a “Subscribe for Long Term” rating for the issue.
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