UTI Mutual Fund is on course to go public with an intial share sale in the second half of the year with a valuation of over USD 1 Billion and is also looking at inorganic growth to reclaim the prime position it had enjoyed before the US 64 Scheme went bust in early 2001.
As and when the IPO happens, UTI will be first fund house to be listed in the country.
The IPO will allow partial exit for the nation's oldest fund house's four sponsors-SBI, LIC, BOB and PNB which own 18.5% each in it, while the remaining 26 percent is held by US-based Investments firm T Rowe Price.
"We continue to believe IPO will happen in the second half of 2017. We are awaiting Government go-ahead . Once that is in, we'll appoint merchant bankers and seek SEBI nod,"UTI Managing Director Leo puri told PTI in an Interview.
UTI mutual fund was created after Parliament passed the Unit Trust of India Act in 2002 after the the flagship US 64 scheme went belly up. Post the Act, the then mighty UTI was bifurcated into Specified undertaking of Unit Trust of India(Suuti), which owns almost 11.8 per cent in Axis Bank and UTI asset Management Company
Sixty four companies to be delisted from Bombay Stock Exchange Platform
These companies have remained Suspended for more than 13 years. This is an addition to 194 firms already being delisted by the stock exchange in august
The securities of these firms have been under suspension for more than 13 years on account of non-compliance of various clauses of listing regulations, the securities of these firms have been under suspension for more than 13 years on account of non-compilance of various clauses of listing regulations.
"64 companies that have remained suspended for more than 13 years would be delisted from the platform of the exchange with effect from december 13 pursuant to order of Delisting Committiee of the exchange in terms of of SEBI Regulations" BSE said in a circular
These scripts will be moved to the dissemination board of the bourse for 5 years as directed by markets regulator Sebi
The companies include Ambuja zinc, Asian Alloys, Elder Telecom, Hindustan Breweries & Bottling, Zenith Steel tubes and industries
The Bombay Stock Exchange (BSE) is the 11th largest stock exchange in the world. It is also the first stock exchange of Asia.
The listing of BSE was delayed due to the integration of the FMC with SEBI and due to regulations for listing of Stock Exchanges. Towards the end of 2015, the SEBI gave permission to the stock exchanges to go ahead with listing.
In March 2016, the SEBI has given an in-principle go ahead to BSE for listing its shares on another stock exchange.
The shares of BSE Ltd are currently being traded in the unlisted shares' secondary market around Rs 340/ share.
Investing in BSE shares can be an excellent long term bet due to the following reasons:
• The market capitalization of the stock exchange is over USD 1.6 trillion.
• There are only two major players in the market - BSE and NSE.
• There are huge entry barriers so threat of new entrants is very low.
• The market size is expected to grow significantly due to the growing GDP, and increased market participation.
Asset allocation is the key to long term portfolio appreciation. Adding uncorrelated securities reduces the overall risk in an investment portfolio. Unlisted equities have surprisingly low price correlation with the listed ones. Hence including unlisted equities in the portfolio reduces the overall risk in the portfolio.
Many young companies grow much faster than mature companies due to their lower base and hence they tend to significantly outperform the benchmark returns. However, a lot of this growth happens before the company goes public with an IPO. Hence participating in such companies in the Growth / Pre IPO stage can provide superior returns to the investor and carefully chosen unlisted/Pre-IPO shares can give much higher portfolio risk adjusted returns than the benchmarks!
The journey of RBL bank so far is nothing short of a classic Bollywood drama. Starting in a rural pre independence setting; the then Ratnakar Bank did steady business for several decades before a change in management ushered in an era of transformation, expansion, high growth, digitalisation and the glamour of Private Equity investors lining up with growth capital!! Then started the process of the Initial Public Offering of the bank to comply with RBI’s directions, to raise further capital and to provide exit to some of the investors. In the same parlance; this was probably just the interval.