UTI Asset Management Company Ltd (UTI AMC) on Wednesday announced that T Rowe Price Group Inc (TRP Group) through its wholly owned subsidiary T Rowe Price Global Investment Services Ltd. (TRP) has acquired 26 per cent stake in UTI Asset Management Company Limited (UTI AMC) and UTI Trustee Company Pvt. Ltd for around Rs.650 crore.
Directors representing TRP have been inducted on UTI AMC Board.
TRP has acquired 6.5 per cent stake from each of the existing four sponsors of UTI AMC — State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India.
Consequent to this stake sale, the existing sponsors will now retain a stake of 18.5 per cent each in UTI AMC.
UTI Asset Management Company Chairman and Managing Director U. K. Sinha said “this is a major milestone for UTI AMC and will help accelerate our growth. We look forward to a long and fruitful association with T. Rowe Price. This collaboration between two of the leading players in the asset management industry will help leverage UTI AMC’s in-depth knowledge of Indian markets with the global best practices, systems and processes of T. Rowe Price. T. Rowe Price has a strong technology and research team globally which will be beneficial for us.”