Anand Rathi's IPO report on UTI Asset Management Company
UTI Asset Management Company Ltd. (UTI) established the first mutual fund in India and has been active in the asset management industry for more than 55 years. UTI is the second largest asset management company in India in terms of Total AUM and the eighth largest asset management company in India in terms of mutual fund QAAUM as of June 30, 2020. UTI has the largest share of monthly average AUM attributable to B30 cities of the top ten Indian asset management companies by QAAUM as of June 30, 2020. UTI caters to a diverse group of individual and institutional investors through a wide variety of funds and services, managing the domestic mutual funds of UTI Mutual Fund, provide portfolio management services (PMS) to institutional clients and high net worth individuals (HNIs), and manage retirement funds, offshore funds and alternative investment funds.
Valuation and Outlook
Though the company has underperformed its larger industry peers in recent past, UTI Asset Management Company Limited’s IPO is priced relatively at a discount of about 30% at upper price band compared to its industry peers. Considering the future growth prospects for asset management industry and relative valuations we recommend Subscribe (Long Term) for the IPO.
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