SPA Securities IPO report on UTI Asset Management Company
The second largest AMC in India by Total AUM, the eighth largest AMC in India by mutual fund QAAUM and the largest share of monthly average AUM in B30 cities among the top 10 AMCs in India- well UTI needs no introduction. Income and liquid and money market funds accounted for 42.7% of their total Domestic Mutual Fund QAAUM. PMS business had AUM of INR 6,970.5 billion, 84.9 % of which was attributable to the mandate to manage part of the corpus of the EPFO. As of June 30, 2020, 50.8% of their Domestic Mutual Fund Closing AUM was invested in equity shares, 0.4% was invested in gold and 48.7% was invested in fixed income securities.
Valuation and Outlook
Considering the scope of opportunity in B30 cities and within T30, beyond the state of Maharashtra the scope of the opportunity seems humungous, further the scaling up of the PMS and retirement solution business could also boost earnings going forward. With the worst behind them as the management learns from its recent hiccups and past experiences, we recommend to subscribe to the issue as a good long-term investment.