UTI Asset Management Company has responded to reports of Tata group getting close to acquiring a majority stake in the AMC, saying that it is not part of any such negotiations.
"The company is not part of any such negotiation/events as mentioned in the news report. The company has not taken any decision on the transaction as mentioned in the news item," the AMC told exchanges on Monday.
Earlier, a report claimed that the Tata group is in final talks for acquiring a majority stake in India's eight-biggest fund house from four state-owned financial entities -- Punjab National Bank, Life Insurance Corporation of India, State Bank of India and Bank of Baroda.
The shares of the company surged over 10 per cent on Monday, December 19, 2022.There were similar reports in August 2022 and UTI AMC had then, too, denied having any knowledge of such negotiations.
If such a deal goes through and a merger happens, then the combined entity is likely to become the fourth-largest AMC in India.
In the September quarter of the 2022-23 financial year, UTI and Tata AMC, together, had average assets under management (AUM) of Rs 3.2 trillion.
UTI MF was then eighth in AUM rankings, with assets worth Rs 2.3 trillion. Tata MF was at 12th spot with an AUM of Rs 91,300 crore (Rs 913 billion).
-- Abhishek Kumar/Business Standard