The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
UTI -In top 10 AMC , manages mutual funds, PMS, NPS, AIF and offshore funds
Offer purpose — Offer of sale by existing stakeholders
Key Service domains -Managing domestic mutual funds, PMS, alternate investment funds, retirement unds and offshore funds
Clients -Postal and retiree PMS and NPS services. High concentration in B30 markets segment
Revenues from Key Services–Domestic Mutual funds AUM. PMS and NPS income constitute only 3% although with higher AUM
SEBI policy like change in total expense ratio, re-categorization of various schemes, upfront commissions in the past led to lower incomes. Future policy changes can also pose a risk
Large portion (almost 75%) of UTI AMC assets under management in 6-7 active funds, so large scale redemption can be cause of worry
Falling Market share and fall of revenue from operation in last two years is overhang
Financials are on weak foot with ROE mostly 11-13% on an average
Increasing awareness among people about equity investments and growing popularity of Mutual funds can boost revenues
Increasing concentration in B30 Markets segment can boost revenues where they can charge higher TER
Optically cheaper valuation as compared to HDFC AMC and NIPPON AMC
Should we apply?
Good chances of allotment.
While valuation, business seems to be in right place but financials are only one thing which leads to– Avoid for IPO subscription
Listing day may see -10% to +10% gains . Recommended to book profits if any on listing day.
Wait and watch policy is best for long term investment in UTI AMC
CAMS IPO crisp summary –Listing Awaited
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