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2008-05-21

UTI plans to relaunch $500 mn IPO

UTI Asset Management, India’s second-largest mutual fund firm, plans to revive a roughly $500 million IPO that had been delayed from earlier this year, with management scheduled to meet investors next week to gauge market interest, according to people familiar with the deal.


UTI executives will meet investors on Monday in Mumbai and on Tuesday in Singapore, followed tentatively by presentations in Hong Kong, London and New York.


UTI had hoped to complete its domestic listing in April but delayed the deal as India’s stock market went into freefall, with the benchmark Sensex plunging 23 percent in the first three months of the year. Since the start of April, however, the index has risen 10 percent.


IPO volumes from India have nearly doubled so far this year from the same period last year, according to Thomson Financial data, although Reliance Power’s nearly $3 billion January listing accounts for most of the $3.8 billion raised from 18 offerings.


Citigroup, Enam Securities and JM Financial are sponsoring the deal. No terms or deal schedule were immediately available.


UTI managed 8.34 million accounts worth 568.54 billion rupees ($13.3 billion) as of the end of December.

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Disclaimer

Ours is an advisory role. The final decision and consequences based on our Information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.