UTI-I to sell Crisil stake

The specified undertaking of the Unit Trust of India, (Suuti or UTI I) is set to sell its holdings in a sensitive company for the first time when it tenders its stake in rating agency Crisil.

UTI I is likely to sell its stake in the ongoing open offer of Standard & Poor. It is currently in the midst of submitting a report to the government on sales of strategic holdings, sources in UTI-I said.

Sources indicate that UTI-I's exit from Crisil can also trigger its exit from other sensitive companies such as Icra and CARE, where UTI-I holds 7.95 per cent and 12.5 per cent respectively. UTI-I's holding in 8-9 sensitive companies is valued around at Rs 6,500-7,000 crore. UTI-I needs prior government approval to sell stake in these companies.

A senior UTI-I official said the revised S&P offer for Crisil was a fair price to exit. The government has already indicated to financial institutions to take a commercial decision regarding selling their stake in Crisil and the submission of the proposed report was a mere formality, the official added.

The Unit Trust of India house holds a 8.43 per cent stake in Crisil, with UTI-I holding a 4 per cent stake while the rest is with the UTI Mutual Fund. Both UTI I and UTI MF are likely to participate in the open offer, which could fetch them Rs 41.46 crore at the current offer price of Rs 775 a share.

UTI I has already offloaded part of its Rs 10,000 crore equity portfolio in the booming stock market in the past few months and is likely to sell its stake in remaining companies in the three to four months.