Tata Sons Private Limited is looking to buy a majority stake in India's eighth largest mutual fund UTI Asset Management Company Limited (BSE:543238) (AMC). The group is in final stages of negotiation to buy the stake from four state-owned financial entities -- Punjab National Bank (BSE:532461), Life Insurance Corporation of India (NSEI:LICI), State Bank of India (NSEI:SBIN), and Bank of Baroda (BSE:532134) – which together own 45.16% stake in UTI AMC. According to a report in The Economic Times, a final agreement is being sought on the deal valuation.

People privy to the development said the internal approvals are in and the Tata Group has received in-principle nod from the other big investor in AMC -- global investment management firm T Rowe Price Group, which holds around 23%. If the deal goes through, Tata AMC and UTI AMC's combined entity could become the fourth-largest asset manager in India, said the report. Tata Sons and Tata Investment Corporation Limited (BSE:501301) are two Tata Group entities that own 68% and 32%, respectively, in Tata AMC.