UTI Strikes Back ; UTI AMC is set to become the first Indian asset management company to list on the stock exchanges. The once-beleaguered company has ridden the stock boom to turn around. The question now is: will listing change its future course?

Business Today, December, 2007 by Mahesh Nayak

When Life Insurance Corporation of India, State Bank of India, Bank of Baroda and Punjab National Bank were forced to pick up 100 per cent stake in UTI AMC (asset management company) in September 2005, the media and analysts were aghast. Most assumed that the government was, as usual, throwing good money after bad. Very few would have dared to imagine that their investments would return 1,000 per cent returns in just two years. But that's exactly how things have panned out. Today, the market is valuing the AMC at up to Rs 12,000 crore--against the acquisition cost of Rs 1,237 crore. And that doesn't include the value of its real estate assets and other investments.

Now, the sponsors, as the four investors are collectively called, who each own 25 per cent of UTI AMC, are...

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