UTI AMC Grey Market Premium,Listing Gains, Analysis.

UTI Amc Grey market Premium is now trading at 15% from various reports. as there is a decrease of interest in this IPO. Listing Gains for this Ipo can Be expected at Rs. 45-55 INR. Uti amc grey market on day 3 is sluged but there is no demand for this shares from QIB’S, HNI’S and retail investors over subscribed.

Uti amc ipo allotment status will be made available on oct 7 2020 on our site. You can check uti amc allotment status by following steps. Before we check the allotment status have a look of company business model and financials.

Today we will be doing an analysis on UTI IPO. we are going to do the analysis on UTI IPO – Unit Trust of India. Let’s start then with the analysis about UTI AMC IPO. Let’s see what all can we cover in this analysis.

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UTI AMC IPO TIMETABLE

UTI AMC IPO Details:

UTI AMC IPO GREY MARKET Premium:

Uti amc Ipo grey market premium is changing everyday as there is a decrease in interest over this company the premium is also reduced to 15%. The investors are showing interest in mazgon dock ship builders Ipo and hence grey market premium is decreasing.

UTI AMC IPO Allotment Status:

Uti amc IPo allotment is still not available as still ipo subscribtion is available till oct 1 2020. After the Ipo is closed on 7Th oct we will update uti amc ipo allotment status online in our website.

Company Overview-UTI AMC

Today I will be covering what all, let me tell you that first what work does UTI do? I will give you a brief on it also, we will go through Financials into which we see revenue, Profit, PAT and assets plus for comparison, I will do the peer comparison in which its peer comparison is HDFC AMC and Nippon, we will look into it too we will match UTI Financials with them too and then final parting words would be listing gains and how much over subscription is expected UTI is the oldest mutual fund house in India.

The best part is UTI is not just a mutual fund here it’s written as UTI is a mutual fund its not just a mutual fund UTI AMC is appointed as a portfolio manager by the Government of India.  the deals of GOI like, let’s start reading from here NPS which is quite popular too this everything goes through UTI next . all this information you will get to read it here or anywhere on youtube if you search but no one will tell you how much oversubscription and listing gains will be coming in. the Uti amc grey market premium will also be high for this IPO.

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UTI AMC Businees Profile:

coming on the next part UTI has 11 million live folios which means UTI has more than 1 crore of portfolio management with them. let’s see what else does the company has with them which means debt, liquid, hybrid, income, all the types are there now the biggest thing in this is that this is a mutual fund company and it belongs to the Government. so here the promoter won’t be just one or two individuals now.

Who are the promoters? the sponsors are obviously, both belong to the Government PNB and BOB which also belongs to the Government there is one more stakeholder which is T. Rowe Price International which in itself is a mutual fund company which means that these four are decreasing there shares basically what happened is, in last year december that SEBI had put up a rule due to which UTI has to decrease its holding these were some info about UTI.

UTI AMC Financial Analysis:

Now let’s talk about the financials of UTI 29K million assets were there if I talk in crores then here it will come down to 2900 crores. after which it grew to 3000 crores, then further it grew to 3100 crores which is good. after which in the first quarter which is very important which grew to 3200 crores to which there is still the whole year remaining. so there is hope that the financials and assets will grow.

Hence For this uti amc grey market premium will be high as the financials are attracting the investors.

Revenue For uti amc ipo

let’s come down to the revenue, topline which is how much sales did they do 11,000 million which is approximately 1,100 crores after which is dropped down to 1,080 crore and then later only 900 crore that means if I make a line for revenue then it will be seen as going down if we talk about this year then there is 2700 crores even if I multiply this by 4 then then this will be around 108 approximately, but here the most important thing to focus on is this June quarter was so exceptional because people invested a lot of money due to the market coming down to a bottom people invested in mutual fund, Nifty ETF and etc.

Revenue and PAT analysis:

Now lets come down to the PAT on an 11,000 million sales – 4000 million, lets talk in crores now on 1,100 crores of sales PAT is 400 crores which is nice approximately 30% here, 1,100 crores there is 3,400 crores revenue dropped, thus profit dropped further revenue dropped more, profit as well dropped in this quarter, they have gained around 40% of the profit but no doubt, last year there were PAT deductions happening for corporate companies financials look ok-ok, because as we all know that this company is related to stock market.

We all belong there too, so we all know that up and down’s are a part and parcel of it if there is a bull market then investors do profit-booking if a bear market is going on then people who are smart they do invest a lot of money thinking that we are getting an opportunity to buy at a very low price for long term this was regarding financials if we add more financials in this. Becaus uti amc grey market is high due to good overall financials.

Company Peer Comparision- UTI Amc ipo Grey Market

please read to this carefully now HDFC AMC is currently trading at a 35 PE ratio. and as you can see Nippon is trading at a 36 PE ratio. now, here if we consider the upper price band of 554 then by calculations, UTI IPO will trade at on 554 levels, it will trade at 21 PE ratio the others are at 35 and 36, and this is at 21 PE ratio looks good.

If we talk about the book value as well, I am only considering 554 which is the upper band if we talk about book value then HDFC AMC is over-valued by 11 times Nippon is current 6 times over-valued and if you can guess, UTI will be trading, if it is released at 554 price band at 554 Rs valuation, book value is coming down to 2.6 which look very good and promising because it has not yet been launched in the market so demand is not so over hyped supply is limited and demand is also limited this was financials.

Peer Comparison:

Now let’s come down to peer comparison. if we talk about peer comparison, then here we have a chart of Nippon here Nippon has given a growth and now again stabilised this stabilization started. when SEBI changed the rule last year then there was Covid-19 now after Covid-19 has hit, this mutual fund industry expenses increased but it could’nt grow as much as other sectors grew like Pharma, FMCG Reliance the way those industries are growing same way.

let’s look at HDFC AMC after IPO was launch. it gave a little bit of drop but the stock of 1200 went up to 3600. and again the same thing that we were discussing after the rules were changed rule change happened in December. and after we have seen a drop after that but overall, if we see long term it is ahead of the IPO price till now which is an ok price some important dates it will open on 29th September. and then will be open for 3 days on the 7th we will know the allotment and then on the 12th there will be listing it is on both BSE and NSE.

Offer For Sale:

Now it is clear that this is not a fresh issue because promoters are decreasing there share Promoter who? The Government of India is decreasing its share according to my calculations I expect that the demand will be less because of Industry Chemcon – as the chemical industry had a good demand even IT industry had good demand, thus Happiest Minds here there are chances of demand being low.

I expect, my final parting words, for which you guys are waiting since so long 10:20 let’s come down to business, this info we already know 15-40 times of over-subscription is expected because there so many IPO’s launching nowadays people are finding the place to invest, which we saw during the Chemcon IPO 49 times oversubscription.

Uti amc Ipo Listing Gains and Grey Market Premium:

Now let’s come down to uti amc ipo listing gains. I expect, according to the book value and PE ration we got with 554 price band. according to me, per share at least 50 Rs of listing gains we should definitely get which is 10% of the price band. Uti AMC ipo Grey market premium is Trading at 15% which is 55 INR pper share.

Obviously which is a good amount getting 10% in just 15 days after funds getting blocked and then 12th IPO releases, which is just 15 days I expect 10-30% of listing gains on this IPO but comparatively less demand can be seen which is 15-40 times now we have seen financials, peer comaparison we saw PE ratio, then the Government of India is the promoter that we saw.

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