The current market volatility will not deter UTI Asset Management Company (UTI AMC) from completing its initial public offer through a 100% book-building process by March 31. The fund major believes that this is the right time to test its own credibility. UTI AMC?s IPO would be the first such by a mutual fund house in India.
UTI AMC?s CMD UK Sinha told FE that his company would complete the bidding process by March. The issue may open for subscription by mid-March. ?We are not concerned with the market volatility much because investors who have faith in us will certainly invest in our IPO,? he said.
Sinha also said the AMC was targeting long-term investors. ?We want our IPO subscribed only one time and not 100 times, as other IPOs do,? he said. An executive of the company said all the 1,200 employees of the AMC would get employee stock options. UTI AMC currently has a base of 90 lakh investors.
