UTI Asset Management Company (P) Ltd. has proposed an initial public offering (IPO) plan to the government to provide an exit to its four state-run sponsors, State Bank of India (NSEI:SBIN) (SBI), Life Insurance Corporation of India (LIC), Bank of Baroda (BSE:532134) and Punjab National Bank (BSE:532461). At a meeting with the government last week, the fund house proposed an IPO to divest at least 26% of the promoter stake, which will allow a partial exit of the four sponsors in equal proportion. “The IPO route definitely is the best option.

UTI has sent its proposal in this regard. The finance ministry has to approve it,” said Leo Puri, Chief Executive Officer, UTI Asset Management Co., in a phone interview.