UTI AMC likely to revise DRHP after Bombay HC asks to include staff liabilities

UTI AMC, the country's largest asset management company in terms of total AUM, is likely to revise the draft red herring prospectus (DRHP) that it filed with the capital market regulator Securities & Exchange Board of India (Sebi) for initial public offering (IPO).

The Bombay High Court (HC) on August 28 asked the company to include the quantum of contingent liabilities arising out of pension and other dues related to its former as well as serving employees in the DRHP for the IPO.

The order came after the UTI Retired and VSS Employees Social Association filed a petition in the court alleging that there were certain dues that were being claimed by these associations to the tune of about Rs 1,250 crore, and the same were not mentioned as the risk factor in the DRHP. 

The petition has been withdrawn now after the AMC assured that it will include such liabilities in the document.