Race hots up for UTI Securities

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Chennai, Aug 23: SBI, LIC and Geojit Financial Services Ltd are among a number of institutions and brokerages which have reportedly evinced keen interest in buying out UTI’s stake in its brokerage arm UTI Securities Ltd which has been up for sale. UTI has decided to exit from the stock broking business by selling its stake to interested parties.

Market sources told FE, that at least three institutions, SBI, LIC and Geojit, have shown interest in buying out UTI’s stake in its brokerage arm. “SBI, LIC and Geojit are keen contenders for UTI Securities. SBI is expanding their retail push, while LIC is a major investor. For Geojit, it would give it a national foot print and strong institutional client base,” sources said, adding “there are a few others, also interested in the company.”

“We have made some enquiries to get some details from UTI Securities. It is very preliminary to say that we will buy the brokerage,” PH Kurian, managing director, Kerala State Industrial Development Corporation (KSIDC), one of the joint venture partners of Geojit told FE. KSIDC had earlier, said that on behalf of Geojit, it has written a letter to chairman of UTI-I evincing interest in the disinvestment proposal of UTI Securities Ltd.

“We have asked for some details from UTI since little information is available outside. We have not entered into any agreement with UTI for buying UTI Securities,” CJ George, managing director, Geojit Financial Services said. SBI and LIC officials were not available for comments.

UTI Securities was incorporated in 1994, by UTI as a 100% subsidiary and after the repealing of UTI Act post US 64 fiasco, it has come under the Administrator of the Specified Undertaking of Unit Trust of India (ASUUTI).

It has been working as an independent entity for providing financial intermediary and advisory services to its corporate and retail clients. The company has grown from an institutional brokerage house to a full-fledged financial intermediary having nationwide presence in major cities with 20 branches and 100 franchises. It has a strategic interest in the Standard Chartered UTI Securities Ltd which is into the business of primary dealership and trading in government securities.