Tepid Listing: UTI AMC opens first day trade at Rs 490, a 12% discount

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26 Aug, 2025 12:21

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UTI Asset Management Company, the eighth largest AMC in India in terms of mutual fund QAAUM, opened the first day first trade at a 11.51 percent discount on October 12.

The stock started off trade at Rs 490.25, a Rs 63.75 decline compared to IPO price of Rs 554 on the BSE.

On the National Stock Exchange, the opening price stood at Rs 500, down 9.75 percent.

The stock recovered some losses from opening price, but remained under pressure. At 10:03 hours IST, it was trading at Rs 512.05, down 7.57 percent with volumes of 1,72,794 equity shares on the BSE.

On the National Stock Exchange, it was down 7.4 percent at Rs 513, with volumes of 17,67,397 equity shares.

Given the tepid response to IPO and consistent redemption pressure from investors in the mutual fund industry for last three months, the listing was on expected lines.

Incorporated in 2002, UTI AMC, the second largest asset management company in India in terms of total AUM has 4 sponsors (State Bank of India, LIC, Punjab National Bank and Bank of Baroda, and one global investor T Rowe Price International as shareholders.

The Rs 2,160-crore IPO was an offer for sale by the abovementioned shareholders. Hence all the issue proceeds had gone to these shareholders.

The public issue was subscribed 2.3 times during September 29-October 1.

UTI AMC manages 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. As of June 2020, its total QAAUM for domestic mutual funds was over Rs 1.3 lakh crore, while the other AUM was Rs 8.49 lakh crore.

Centrum Broking is optimistic about the AMC space as asset management, being a fee based business is slated to grow (QAAUM) at an 18 percent CAGR in the medium term led by overall economic growth, growing investor base and higher disposable income levels.

"Recent regulatory changes such as revised expense ratios would lower costs for mutual fund investors which should aid in greater retail participation," the brokerage said.