The first initial public offering by a fund house in India is on course with the board of UTI Asset Management Company approving the proposal to list the shares of the firm by March 2008. The board of UTI AMC approved a proposal on Tuesday to go in for an offer for sale and a fresh issue of shares. The offer for sale will lead to a dilution of 49 per cent of the equity holdings of the four sponsors of the AMC — State Bank of India, Punjab National Bank, Life Insurance Corporation of India and Bank of Baroda which jointly control 100 per cent of the equity. Given the current valuations, the brand strength and profitability of the AMC, these sponsors are expected to do well from the listing. The UTI AMC board also approved a proposal to grant stock options to its employees besides appointing a consultant for kicking off this process. The issue of fresh shares by the AMC is aimed at meeting growing business needs, according to industry sources close to the development. The listing of the AMC’s shares will be completed before 31 March 2008. UTI AMC was formed in 2003 after the operations of the first mutual fund in the country — UTI — was split in 2003. The four state-owned sponsors control 25 per cent each of the paid-up capital of the asset management firm.