The TATA group is in final talks to acquire a majority stake in India’s eight largest mutual fund UTI Asset Management Company ( AMC ).
The sources from internals are signifying that the TATA is in final negotiations to buy a majority stake in India’s one of the largest Asset Management Company UTI from four state-owned financial entities as per sources. The Punjab National Bank (PNB) , Life Insurance company (LIC) , State Bank of India (SBI) and Bank Of Baroda together own 45.16 % stake in UTI AMC.
Officials who are too close to the deal negotiation have conveyed that the approvals for the deal are done and TATA has received in principle agreement from another big investor in the UTI AMC – The Global investment management firm T Rowe Price group which holds 23% in the firm have also given the nod . If the deal is done then there’s a high probability that TATA gonna merge then Tata AMC and UTI AMC are merged, the combined entity would be the fourth largest asset manager in India.
| Rank | Company | AUM( in cr) |
| 1) | Sbi mf | 682607 |
| 2) | ICICI PRU MF | 476191 |
| 3) | HDFC MF | 429271 |
| 4) | Nippon india MF | 285054 |
| 5) | Aditya birla MF | 282580 |
| 8) | UTI MF | 233595 |
| 12) | TATA MF | 91284 |
Two Tata Group entities – Tata Sons and Tata Investment Corporation – own 68% and 32%, respectively, in Tata AMC.In December 2019, the Securities and Exchange Board of India (Sebi) ordered LIC, SBI and BOB to reduce their stakes in UTI AMC by December 2020. These three public sector financial institutions held 18.24% each back then.. Subsequently, the three reduced their stakes to below 10% during the IPO in October 2020.
After the avition merger by the TATA group this will be their second biggest merger. Tata is set to dominate India’s businesses in the coming years.
