RPT-India's UTI to raise up to $480 mln - sources

(Repeats story issued late on Monday) (For more on upcoming Indian IPOs, click on <IN/IPOMENU>)

By Narayanan Somasundaram

MUMBAI, June 23 (Reuters) - India's UTI Asset Management aims to sell shares through an IPO and a private placement for up to $480 million, about 26 percent less than earlier planned after a market slide dented investor demand, four bankers with direct knowledge of the matter said on Monday.

Existing shareholders in the number four Indian mutual fund will likely raise up to $360 million by selling 48.5 million shares, or 35 percent of the equity, in the initial public offering (IPO) at a price band of 270-320 rupees a share, two bankers said.

The offer should open in mid-July, said one banker, who did not want to be identified.

"The consensus is there from the sponsors to go ahead with the deal despite weak market conditions," he said. "There is some acceptance on the price band too."

Ahead of the IPO, UTI will privately place 16 million new shares at the same price band to raise up to $120 million, another banker involved in the deal said.

After the IPO and private placement, public holding in the asset manager will be about 49 percent, including shares held by an employee trust, the bankers said.

Government-run lenders State Bank of India (SBI.BO: Quote, Profile, Research), Bank of Baroda (BOB.BO: Quote, Profile, Research) and Punjab National Bank (PNBK.BO: Quote, Profile, Research) and state-owned Life Insurance Corp of India each own 25 percent of UTI Asset now.