Crisil has assigned an IPO Grade "4/5" to the proposed initial public offer of UTI asset Management Company. This grade indicates that the fundamentals of the issue are above average relative to other listed equity securities in India. This grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals.
The grading reflects UTI AMC`s position as one of the leading players in the mutual funds industry. UTI AMC has a high proportion of retail and equity assets under management (AUM) when compared with other players by virtue of its strong retail distribution channel and brand recognition. The retail base helps the company better manage the churn of assets while higher proportion of equity provides higher recurring management fees when compared with debt funds.
The grading reflects Crisil''s expectation that the management will be able to harness these strengths to mobilise assets and register growth to substitute the expected decline in income from the Specified Undertaking of Unit Trust of India (SUUTI).
The grading reflects UTI AMC`s position as one of the leading players in the mutual funds industry. UTI AMC has a high proportion of retail and equity assets under management (AUM) when compared with other players by virtue of its strong retail distribution channel and brand recognition. The retail base helps the company better manage the churn of assets while higher proportion of equity provides higher recurring management fees when compared with debt funds.
The grading reflects Crisil''s expectation that the management will be able to harness these strengths to mobilise assets and register growth to substitute the expected decline in income from the Specified Undertaking of Unit Trust of India (SUUTI).
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