UTI Mutual Fund is likely to offload 20 per cent stake to "strategic partners" next month before it comes out with the initial public offer in early February.
"As much as 20 per cent would go to strategic partners which would help UTI expand its core businesses," UTI Chief Marketing Officer Jaideep Bhattacharya told PTI.
The pre-IPO placement is likely to be complete by the end of December. In it no single investor would get more than 5 per cent, he said.
About one crore share of Rs 10 each would be divested through private placement to the strategic investors.
UTI MF, being the country's oldest fund and having large network of offices, has already generated much interest from many domestic and foreign financial service providers, he said, adding, the valuation is being carried out.
The strategic investors along with capital will bring in expertise so that the company can become the one-stop shop for financial needs of every customer, he added.
Besides, the fund house would divest 29 per cent of its stake through offer for sale for which Draft Red Herring Prospectus would be filed with the regulator by December.
The issue is likely to hit the market in early February, he said, adding, "we have appointed seven investment managers." JM Financial, Enam Securities and Citi are the global coordinator-cum-book running lead manager (BRLM), while UBS, Goldman Sachs, ICICI Securities and SBI Capital along with CLSA will act as the lead book-running managers.
UTI would probably become the first public listed fund manager in Asia by the end of this fiscal, he said.