1. LIC nixes proposal to list UTI

LIC nixes proposal to list UTI

Life Insurance Corporation of India (LIC) has turned down the proposal for an IPO for UTI Asset Management Company (AMC). As a result, the meeting that was to take place between the promoters of UTI last week has not been held as yet.

By: | New Delhi | Published: August 8, 2017 6:50 AM
LIC, UTI While LIC was keen to buy out the other shareholders of UTI, the finance ministry was initially keen on just a small listing of, say, 10% of UTI’s shares.

Life Insurance Corporation of India (LIC) has turned down the proposal for an IPO for UTI Asset Management Company (AMC). As a result, the meeting that was to take place between the promoters of UTI last week has not been held as yet.

Of the four PSU shareholders, State Bank of India (SBI), Bank of Baroda (BoB) and Punjab National Bank (PNB) had agreed to the listing in early February. SBI, BoB, PNB and LIC each hold an 18.5% stake in UTI AMC, while the remaining 26% is owned by T Rowe Price, a US investment firm. Until all four PSU shareholders agree to the listing, sources say, UTI’s plan for an IPO cannot go through.

As per UTI’s shareholder agreement, shareholders have the right to direct the company to appoint a banker to establish the feasibility of listing. ICICI Securities was appointed for this after BoB, PNB and US firm T Rowe Price invoked this clause. The shareholders meeting was scheduled to resolve the stalemate.

While LIC was keen to buy out the other shareholders of UTI, the finance ministry was initially keen on just a small listing of, say, 10% of UTI’s shares. Since this would have resulted in T Rowe Price’s shareholding falling below the critical veto level, it refused to accept this — it was this veto power that allowed it to resist the finance ministry’s pressure to appoint its candidate as CMD.

T Rowe Price, however, has communicated that it is willing to dilute to below 26% if there is a broader listing since the mutual fund will then be board-managed and it does not want any veto power. It is not clear what the finance ministry’s current view is since all the banks are keen to list so that they can use the funds to meet their capital requirements.

Get latest news and updates on Auto Expo 2018, check breaking news on Budget 2018, like us on Facebook and follow us on Twitter.

  1. R
    rakesh
    Aug 8, 2017 at 11:01 pm
    Remove all the Bogus top management people from UTI Management, including Suraj kealey, MD, Kamlesh dangi , and Retail head , and board of directors , appoint only IAS officers and govt. nominees in UTI management. if public money is to be protect, otherwise huge public money is wasted in drain.
    Reply
    1. S
      SANJAY KAMBLE
      Aug 8, 2017 at 10:25 am
      SINCE THE APPOINTMENT OF MD WITHOUT QUALIFICATIONS AND SNATCHING THE RIGHT OF IAS MR KHO , ON BEHEST OF US BASED COMPANY T ROWE PRICE, MD NEVER TRIED OR EVEN GAVE STATEMENT FOR THE BETTERMENT OF UTI MF. YES, HE WAS VERY MUCH IN PLANTING NEWS FOR IPO AND LISTING BUT NOW FAILED. BUT PASSED IN INCREASING HIS RY FROM INITIALLY 2cr To ALMOST 20 Cr CTC THIS YEAR WITH A GRAB OF ESOPs HOWEVER IT'S NOT CONFIRMED THAT HE IS ELIGIBLE FIR THIS TRESURE?? GOI APPROVED ESOP SCHEME IS REMOVED FROM THE INTRANET OF UTI MF SIGNALING A BIG FRAUD WORTH CRORES FROM THE PSU AND PUBLIC MONEY ?? IT'S WORTH MENTION THAT 6.5 SHARES FROM LIC, PNB,BOB AND SBI WERE ALLOTED TO TRP AT A DIRT PRICE WAS REVEALED IN A RTI QUERRY. PEOPLE AND GOI IS NOT AWARE HOW THEIR MONEY IS BEING LOOTED WITH NEXUS TO EX IAS OFFICERS POSTED TO UTI WITH MD. FOR MORE UPDATES KINDLY VISIT utiamcofficersassociation at the rate g mail REGARDS
      Reply
      1. H
        Harshal
        Aug 8, 2017 at 9:22 am
        The core business is sufferin. Rather than listing management should think of improving performance and their by increasing SoW, rank and profitability.
        Reply

        Go to Top