A mutual fund company or Asset Management Company (AMC) is like any other company. It too has investors, shareholders who wish to look for an exit for their investments in the AMC (or ‘unlock value’ which is a better way pf phrasing it).
These are large company with lakhs of crores of Asset Under Management (AUM) and one can easily see that their revenues are in the thousands of crores range.
An Initial Public Offering (IPO) is an opportunity to do so. Many AMCs have been in the news for this in the last few months (Reliance, ICICI, HDFC). This is neither a good thing nor a bad thing for the consumer of these AMCs.
- As an investor you will now have access to more information on how the AMC manages it books and operations (much of it was already available, thanks to the stringent guidelines of the regulator, SEBI).
- On the other hand the AMC like any other listed entity will be under pressure to make more profits and is accountable to a larger pool of shareholders.
