UTI Asset Management shares surge 5% after PPFAS MF block deal

Shares of UTI Asset Management Company surged 5 percent in the morning trade on March 21 after PPFAS Mutual Fund picked up 11 lakh shares or a 0.88 percent stake in the company through a block deal on Monday.

According to NSE’s bulk deal data, the mutual fund house bought shares for Rs 636 apiece which took the total deal value to Rs 71.4 crore. Sellers for the deal could not be ascertained immediately by Moneycontrol.

At 11.06am, shares of UTI AMC traded at Rs 671 on the National Stock Exchange (NSE), up 5.31 percent from the previous close. The stock touched an intraday high of Rs 689.30.

Volumes were also high as 12 lakh shares of the company exchanged hands on the bourses so far, as against the one-month daily traded average of 2 lakh shares.

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However, the stock has remained under pressure since April last year, dropping by over 29 percent in the past year due to its weak financial performance. In the December quarter, the company’s net profit fell sharply due to lower equity yields, mark-to-market losses, and higher staff costs.

UTI AMC’s market share was 4.5 percent in February, down 3 basis points on month and 29 basis points year-on-year.