UTI Asset Management Company, India's oldest mutual fund house, has filed the Draft Red Herring Prospectus with the Securities and Exchange Board of India to enter the capital market soon with an Initial Public Offering of 4.85 crore equity shares of Rs 10 each through an offer for sale by its four sponsors - State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda.UTI AMC, after its IPO, will become the first mutual fund house to be listed on the Indian stock exchanges.The offer also comprises a reservation of not less than 4.85 lakh equity shares for subscription by eligible employees and the balance for the public.Of the total net offer, not less than 50% shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, out of which 5% shall be available for allocation on a proportionate basis to mutual funds only.Further, not less than 15% of the net offer will be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the net offer will be available for allocation on a proportionate basis to retail individual bidders.The company and its predecessor, the Unit Trust of India have been active in the asset management industry in India for more than 40 years, after having established the first mutual fund in India. It has a national footprint with representatives in 455 of India's 604 districts, with an extensive network of 79 UTI Financial Centres, independent financial advisors, banks and other distributors, as well as offices overseas.
