“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

27 Mar 2016


At the meeting earlier this week, SBI repeated its view that UTI AMC should be merged with SBI AMC while Punjab National Bank felt that a listing would be the best way to discover the true value so that it could divest its shares.
T Rowe Price repeated its desire to go in for an IPO while Bank of Baroda said it would prefer an IPO - but should this not be feasible, a third-party valuation was a possibility so that it could divest its stake. The LIC representatives, however, did not reveal their mind, saying that this had already been communicated to the finance ministry. With this, the ball is once again in the finance ministry's court.
While SBI has said that if its position is not accepted it is in favour of divesting its stake, it is not clear how this is to be done if there is no IPO - nor is it clear if T Rowe Price is interested in buying out the PSU institutions.
The battle over UTI AMC has been going on since April 2011, after UK Sinha stepped down as UTI chief to take on the Sebi chief's job. At that point, the finance ministry was keen on appointing a chief that UTI's board was not in favour of.
After manpower consultants Egon Zehnder had given a shortlist to the search committee, it had even met the finance ministry's choice (who was not on the shortlist) but had not found him suitable.
While T Rowe Price was in favour of UTI being a board-run company after listing, the move didn't gain traction as the PSU banks/financial institutions were not keen on this.

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