UTI AMC tumbles after clarification

UTI Asset Management Company fell 4.33% to Rs 824.50 after the company denied the media reports suggesting Tata AMC's plan to buy stake in the firm.

The media reported on Tuesday (16 August 2022) that rival Tata Asset Management Co is set to buy a significant stake in the company. The deal would make the combined entity the sixth asset largest manager in India, reports added.

Reacting to the media reports, shares of UTI AMC surged 15.01% on Tuesday.

However, UTI AMC clarified to the bourses today, 17 August 2022, that it was not aware of such negotiations/events. The company said it has not taken any such decision as reported in the news article. It reiterated that whenever there is any material development with respect to the affairs of the company, it will intimate the stock exchanges immediately.

As of 30 June 2022, assets under management (AUM) of UTI AMC and Tata AMC were Rs 2.24 lakh crore and Rs 88,367 crore, respectively.

As of 30 June 2022, Tata MF owned a 2.62% stake in UTI AMC. The global investment management company T. Rowe Price is currently the largest shareholder with a 22.97% stake as of the June quarter.

UTI AMC is Investment Manager to UTI Mutual Fund. UTI AMC is registered as Portfolio Manager with SEBI and through its subsidiary it acts as Fund manager for AIF, among others. It also has a countrywide network of branches along with a diversified distribution network.

The company's Q1 FY23 profit after tax (PAT) was at Rs 94 crore, down 39% YoY and up by 74% QoQ. Total revenue from operations for the quarter was Rs 293 crore, down by 15% YoY and 3% QoQ. The operating expenses for Q1 FY23 were at Rs 162 crore, up 4% YoY and down by 16% QoQ basis.

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