India’s Tata Group is in the last leg of discussions to purchase a majority stake in UTI Asset Management (UTI AMC) from four state-owned financial firms, The Economic Times (ET) has reported.

The four firms are: Punjab National Bank (PNB), Life Insurance Corporation of India (LIC), State Bank of India (SBI) and Bank of Baroda (BOB).

They jointly own a 45.16% stake in UTI AMC, which is said to be the eighth largest mutual fund entity in India.

An agreement on the valuation of the deal is being pursued, added the publication citing people familiar with the matter.

According to officials privy to the development, the deal has obtained internal approvals.

T Rowe Price Group, which owns nearly 23% stake in UTI AMC, has also granted its in-principle approval to Tata, added the ET report.

If finalised, the consolidated entity, which will include Tata Asset Management Company (TATA AMC) and UTI AMC, will become the fourth largest asset management firm in India.

However, in a stock exchange filing, UTI AMC stated that the firm has not taken any such decision on the reported deal.

In August this year, various media reports emerged that Tata AMC was looking to buy 45% stake in UTI AMC.

Currently, Tata Sons and Tata Investment own 68% and 32% stakes in Tata AMC, respectively.