Mutual funds major UTI AMC is scouting for a strategic partner and has deferred its IPO plans indefinitely in the face of bearish market conditions, a senior company official said.
The company will be roping in a strategic partner by diluting up to 26 per cent stake, UTI AMC Chief Marketing Officer Jaideep Bhattacharya said, adding, "We are in discussions with a few parties in this regard."
He, however, declined to identify their names, saying it would be premature to do so.
UTI AMC's four promoters -- State Bank of India, LIC, Punjab National Bank and Bank of Baroda -- will each divest 6.5 per cent of their holdings, he said.
As far as its IPO was concerned, the company has readied its plans but the prevailing weak market conditions have forced it to virtually rule out the option till at least this year-end, Bhattacharya told PTI here.
Asked how much the company planned to raise through its IPO, he said that at this point of time it would not be prudent to hazard a guess on valuations as it would depend upon the market situation prevailing at the time of the IPO.
A strategic sale and IPO are two different issues and one need not rule out an IPO even after a strategic partner is brought in, he said.
A strategic sale can take place even when the market is down, as investors exercise such an option with a long-term point of view and the value that it would add to them, he said.
