UTI AMC's Sinha set for another 4-yr term
UTI’s UK Sinha is set to get a fresh term as head of India’s third largest asset management company.
By Gaurav Pai, TNN |
MUMBAI: UTI���s UK Sinha is set to get a fresh term as head of India���s third largest asset management company. The board of directors and sponsors of UTI Mutual have agreed to give Mr Sinha a new four-year term as chairman and managing director, ending all speculation about his tenure at UTI.
Mr Sinha���s extension in tenure is expected to put UTI���s high-profile IPO ��� which has been on the backburner for sometime now ��� on the fast-track. The decision should be seen in the backdrop of Mr Sinha���s recent resignation from the IAS.
Prior to quitting IAS, Mr Sinha held the rank of an additional secretary to the government of India, even as he was on deputation to UTI as its CMD. Mr Sinha took over as the CMD of UTI in 2005, and received an extension last year.
Turbulent market conditions had forced UTI Asset Management to seek an extension for its roughly Rs 2,000-crore public issue from the government for completing the necessary modalities. People familiar with the development said UTI has not yet received the go-ahead from market regulator Sebi for its IPO. As per the earlier schedule, the IPO was to hit the market by March 31, 2008.
Mr Sinha���s extension in tenure is expected to put UTI���s high-profile IPO ��� which has been on the backburner for sometime now ��� on the fast-track. The decision should be seen in the backdrop of Mr Sinha���s recent resignation from the IAS.
Prior to quitting IAS, Mr Sinha held the rank of an additional secretary to the government of India, even as he was on deputation to UTI as its CMD. Mr Sinha took over as the CMD of UTI in 2005, and received an extension last year.
Turbulent market conditions had forced UTI Asset Management to seek an extension for its roughly Rs 2,000-crore public issue from the government for completing the necessary modalities. People familiar with the development said UTI has not yet received the go-ahead from market regulator Sebi for its IPO. As per the earlier schedule, the IPO was to hit the market by March 31, 2008.
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UTI���s hunt for a pre-IPO placement is not going anywhere either. Financial investors had quoted a price of around 8% of the total assets under management (AUM) of UTI AMC. Reportedly, the UTI management found this bid too low, considering the recent highly priced deals struck in the mutual fund space.
UTI AMC, is the third largest asset manager after Reliance Capital Asset Management and ICICI Prudential, with assets worth Rs 48,983 crore. The Mumbai-headquartered AMC will offer less than 5% of its equity to a single investor as per its pre-IPO strategic stake sale plans.
Under Mr Sinha���s reign, UTI MF will be the first company in India to offer ESOPs to all of its permanent employees, as opposed to the norm of offering these only to the top management.
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