UTI IPO

UTI IPO is claimed to be the first Initial Public Offerings (IPO) in the Indian mutual fund industry which is set to hit the market in March 2008. UTI IPO has also filed the Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI), which was expected to be cleared by February 2008.

As has been reported by some sources in October 2007, the UTI IPO is likely to range between ` 850 and ` 1,050. UTI IPO is the very first public offerings by a mutual fund in India and it is supposed to get funded by eleven investment banking firms.

The total volume of the UTI IPO has been estimated to value between ` 5,500 crores and ` 9,000 crores.

As per the sources, the retail investors are likely to get a 5 percent discount. UTI IPO will be setting the bar for the other mutual funds in India in terms of public offerings as it is the first mutual fund in Indian market to start off with IPO. The Asset Management Company does not prefer to go in for higher valuation range especially while dealing with the retail investors and the maximum value set is ` 1050. The four investment banking firms which have been appointed to manage the public offerings of UTI IPO are Lehman Brothers, Enam Securities, Citibank and JM Financial. The Asset Management Company of UTI IPO has decided follow a 20 percent pre-IPO placement through backward auction route.

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