UTI Asset Management shares surge after reports of Tata Groups set to buy 45% stake in company

Shares of UTI Asset Management Co Ltd surged as much as 17 per cent to near-four-month high after CNBC TV reported rival Tata Asset Management Co is set to buy a significant stake in the company. The stock hit a high of Rs 876.55 — a level last seen on April 27 — and gained 16.9 per cent intraday. At 11.50am, the scrip was trading at Rs 868 on the BSE, up 15.8 per cent from its previous close. Year to date, it declined over 18 percent. Neither the TV report disclosed where it got the information from, nor the Tata Asset Management commented on the deal. TV reported the deal would make the combined entity the sixth asset largest manager in India. Tata AMC has an AUM of 85,910 crore, while UTI MF has an AUM of 1,61,394 crore as of March end 2022. As of 30 June, 2022, T Rowe Price holds 22.97 per cent stake in the firm, PNB has 15.22 per cent, SBI 9.98 per cent, BOB 9.98 per cent while LIC has 9.98 per cent stake. Given that four government-held companies are likely to sell stake in this deal, many in the know are now questioning whether this deal was structured around the same time as the Air India deal. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.