UTI AMC, a predecessor of Unit Trust of India, is the second largest asset management company (AMC) in terms of total AUM and eighth largest AMC in terms of mutual fund quarterly average AUM (QAAUM) as on June 30, 2020. As on June 2020, total QAAUM for domestic mutual funds was at | 1,33,630 crore while other AUM was at | 8,49,390 crore. UTI AMC provides discretionary PMS to Employees Provident Fund Organization (EPFO), Postal Life Insurance (PLI), National Skill Development Fund (NSDF) and advisory PMS to various offshore and domestic accounts....
UTI AMC, sponsored by SBI, LIC, PNB and BoB and one of the top 10 AMCs, is the third asset management company to list on the Indian exchanges. Favorable macro tailwinds, which are structural in nature, combined with a reputed brand name augur well for UTI AMC to deliver sustainable growth and profitability. Even though we are positive on the industry prospects from a long-term perspective, we take cognizance of some of the near-to-medium term headwinds. At the upper price band of Rs554/share, the company is being valued at Rs70.2bn. At 25.4x FY20 EPS (trailing), we think the IPO pricing is undemanding given the valuation HDFC AMC and Nippon...
