UTI Asset Management Company, the country's fourth-largest mutual fund, is reviewing its proposed initial public offering in view of the turbulence in the global financial markets and the meltdown in Indian equities.

The management is having a rethink on the IPO because of the bearish sentiment prevailing in the markets and a lack of investor appetite, according to a source familiar with the development.

When contacted, a top company official said, "We will take a final call this week. However, for the time being we can't say whether the IPO plans have been shelved."

While doing roadshows earlier this month, sources said the response from global financial investors has not been overwhelming and their commitment level was not firm.

Hence, the chances of launching the IPO in these market conditions look very remote. They added that it is also difficult to gauge a fair value for UTI MF since there are no listed mutual funds in the country.

Merchant bankers have advised the management to wait for the market conditions to improve, in order to get a better pricing or else to go ahead with the current plans with lower valuations.

Financial investors had quoted 7-8 per cent of the total AUM of UTI AMC as valuations, which the management is not very comfortable with, considering the recent highly-priced deals that were struck in the mutual fund space.

The IPO size was pegged at Rs 1,800-2,400 crore (Rs 18-24 billion).