Punjab Nationwide Financial institution (PNB), the nation’s second largest public sector financial institution, has acquired approval from the Division of Funding and Public Asset Administration (DIPAM) to promote a part of its holding or its complete stake in UTI Asset Administration Firm Ltd (UTI AMC).
“The financial institution has acquired approval of DIPAM, Ministry of Finance, Authorities of India for divestment of financial institution’s complete/half stake in UTI Asset Administration Firm Ltd in single or a number of tranches topic to compliance of SEBI rules/different relevant regulatory tips.” PNB mentioned in a regulatory submitting with the inventory exchanges.
The timeline for making the divestment is but to be finalised.
Presently, PNB has 15.22 per cent stake in UTI AMC. Apart from PNB, the opposite sponsors of UTI AMC are State Financial institution of India, Life Insurance coverage Company and Financial institution of Baroda. The 4 sponsors collectively maintain 45.16 per cent stake within the asset administration firm.
In October 2020, PNB — which then had about 18 per cent stake in UTI AMC — had bought 3 per cent holding in UTI Mutual Fund and earned about ₹180 crore from the transaction.
In 2021-22, UTI AMC recorded whole earnings of ₹1060.27 crore in comparison with ₹942.33 crore within the earlier yr.
It possibly recalled that UTI AMC bought listed within the bourses in mid-October 2020. It turned the third AMC to get listed on inventory exchanges after Nippon Life India Asset Administration and HDFC AMC.
UTI AMC has been lively within the AMC business for over 57 years now.