Tata group’s mutual funds business is stuck

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Editor's note: In December 2022, the Tata group was in talks to acquire a substantial stake in UTI Asset Management Co. A deal would have catapulted the group’s mutual fund arm, Tata Mutual Fund, to fourth largest fund house in the country.  The talks have since fallen through over differences on valuation, say three executives aware of the developments, asking not to be named. With their collapse, the Tata group may have missed an opportunity to propel at least one of its struggling financial services businesses to being a force in the industry.  As part of the deal, Tata Sons, the group’s holding company, was looking to acquire a 45.16% stake in UTI AMC from State Bank of India, Bank of Baroda, Life Insurance Corporation of India and Punjab National Bank. That would have triggered an open offer, which would have taken the Tatas’ stake in the fund house to over 71%. At the time, UTI AMC’s shares were trading in the range of Rs 771 to Rs 885 apiece. At those prices, the group would have needed to shell out a …