Major financial houses in race to acquire UTI Securities stake

Major international financial powerhouses Citigroup, Macquarie Bank, Standard Chartered, Societe Generale and Kuwait-based Global Investment House are in the race to acquire 49% stake in UTI Securities. UTI Securities is currently owned by the Securities Trading Corporation of India (STCI).

STCI had bought 100% stake in UTI Securities for Rs. 265 crores in 2006 from the Specified Undertaking of UTI (SU-UTI). It is now looking to sell 49% stake to a strategic partner. As per the deal, STCI has a minimum lock-in of 51% stake in UTI Securities for three years, which will end in 2008.

The company will now divest 49% stake to a strategic partner, preferably a foreign investor, considering the expertise they would bring in. The talks were at an advanced stage and a prospective strategic partner would be short-listed soon.

Read more in the Business Standard article.

UTI Securities witnesses senior management exits in i-banking unit

Mumbai-based securities firm, UTI Securities, is witnessing major people exits, particularly in its investment banking division, with six senior and middle level executives resigning from the organization in the past one month. The list includes Head of Investment Banking, K Srinivas, company VP, Jinesh Mehta, VP of Broking, Sunil Nair, and VP – IPO and MF Distribution, Nirmal Rewaria.

Their resignations may prompt more junior executives to take the same route amid concerns over the prospects of the organization in the absence of top executives. Factors like lack of both focus and flexibility in decision making are cited as a few major reasons behind their leaving the organization.

Originally promoted by UTI, UTI Securities is now a subsidiary of Securities Trading Corporation of India (STCI). UTI Securities was incorporated as UTI’s 100% subsidiary in 1994. On repealing of the UTI Act, the management of the firm was transferred to the Administrator of the Specified Undertaking of UTI (UTI-I). In April 2006, the broking firm was sold to STCI for Rs. 265 crores.

UTI Securities recently completed Rs. 157 crore-IPO of Essdee Aluminium. Some of the forthcoming IPOs managed by the merchant banker include Pophiraju Industries (Rs. 38 crores), SMS Pharmaceuticals (approximately Rs. 100 crores) and Euro Ceramics (Rs. 90-100 crores).

Read more on this news in The Economic Times.
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