The share opened at Rs 490.25 causing loss of Rs 63 or 11.50% to investors. Price band of the IPO was fixed at Rs 552 to Rs 554 per share
UTI Asset Management Company share listed at a discount of 11.50% to its issue price of Rs 554 on BSE today. The share opened at Rs 490.25 causing loss of Rs 63 or 11.50% to investors. Price band of the IPO was fixed at Rs 552 to Rs 554 per share.
The stock erased some losses to trade 5.24% lower at Rs 524 on BSE. Total 3.84 lakh shares of the firm changed hands amounting to turnover of Rs 19.68 crore on BSE.
Market cap of the firm fell to Rs 6,644 crore.
The initial public offering of UTI Asset Management Company which aimed to raise Rs 2,160 crore was subscribed around 2.3 times till the final day of bidding. The IPO of UTI AMC opened on September 29 and ended on October 1 in a price range of Rs 552-554 per share. The issue received bids for 6.31 crore equity shares compared to the size of 2.73 crore shares.
In a move to divest the stake held by its five shareholders from 100% to 69.2%, State Bank of India (SBI), Life Insurance Corporation (LIC), and Bank of Baroda offered to sell 1,04,59,949 shares each, while Punjab National Bank (PNB) and T Rowe Price International offloaded 38,03,617 shares each.
The IPO was an offer for sale of 3,89,87,081 equity shares or 30.75 per cent stake by the company's existing investors to raise Rs 2,152-2,160 crore. Shares of the company have been listed on BSE and NSE.
This is the third AMC to get listed on the stock exchanges after Nippon Life India Asset Management and HDFC AMC. Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, DSP Merrill Lynch, ICICI Securities, JM Financial, and SBI Capital Markets were the managers to the share sale.