SUTI to spot buyer for UTI Sec by Dec 30

SUTI (UTI-1) is likely to identify a buyer for UTI Securities, a financial intermediary services company by December 30.

The date will also be the deadline for submission of bids for UTI Securities. Top sources in SUTI said the bidding would close on December 30 morning. The bids would be opened later in the same day.

SUTI, the owner of UTI-1, is now awaiting status report from ICICI Securities, the merchant banker for the sale "I-Sec is now holding management meeting with the potential buyers. It is apprising them about the current status of the company. Once the exercise is complete, I-Sec will file its report," the sources said.

A source pointed out that SUTI is yet to receive any formal bid for UTI Securities from any buyer. "We still have a lot of time for that. The picture will be clear once we get the report of ICICI Securities. There is rumour that we have already got some bids but that is baseless," said the source.

Bank of Baroda, Reliance Capital, UTI Bank, Bank of India, the Standard Chartered Bank and Citibank have already completed the management meeting with the merchant banker, the sources said. The sources further pointed out that UTI Securities has projected a profit after tax of Rs 15 crore for 2005-06.

In 2004-05, its profit after tax stood at Rs 10 crore, while the net worth was Rs 50 crore. UTI Securities had more than 30,000 clients and 20 branches all over the country.