Anand Rathi Wealth IPO Review 2021: It looks like there will be no end to the excitement in the market as the IPO’s keep coming. Anand Rathi Wealth IPO will open from December 2nd to December 6th. The company is looking to raise Rs. 660 crores.
In this article, we take a closer look at the Anand Rathi IPO Review 2021 in order to understand the prospects of the company. Keep Reading to find out!
Table of Contents
About the Company
Founded in 2002, Anand Rathi Wealth the wealth management arm of Anand Rathi Financial Services operates in the financial services industry. The company is registered with AMFI engaged in the sale of financial products with a prime focus on mutual fund distribution.
Over the years the company has grown to become one of the leading non-bank wealth solution firms in India. The company product mix has grown over the years too. They provide a mix of wealth solutions, financial product distribution and technology solutions to its clients.
The company was ranked among the top 3 non-bank mutual fund distributors in India in terms of gross commission by CARE Advisory Research for the FY2021.
The company currently caters to over 6,564 active client families throughout the country. When it comes to retention, over 50% of the clients have been with Anand Rathi for over 3 years. Currently, the company has a presence in 11 cities in India. These include Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida. In addition to this, the company also has a representative office in Dubai.
Anand Rathi operates through 3 business verticals. They are Private Wealth(PW), Digital Wealth (DW) and Omni Finance Advisors (OFA). The DW and OFA verticals are new-age technologically led business verticals. Its flagship PW vertical manages RS. 294.74 billion worth of AuM as of August 31, 2021. The company also holds a total debt of Rs. 33.36 crores.
Grey Market Premium
Shares of Star Health traded at a 15.81% premium in the grey market as of Friday. The shares are traded at a price of Rs.637. This gives it a premium of Rs 87 over the issue price band of Rs 550-570 per share.
Key IPO Information
The promoters of the company are Mr Anand Rathi, Mr Pradeep Gupta and Anand Rathi Financial Services Ltd. They hold 12.85%, 5.48% and 43.12% stake in the company respectively. The entire issue is an offer for sale. This includes a sale of 92.85 lakh equity shares by Anand Rathi Financial Services, and 3.75 lakh equity shares each by Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, and Feroze Azeez, and 90,000 equity shares by Jugal Mantri.
They have appointed Equirus Capital Pvt Ltd, BNP Paribas, IIFL Securities and Anand Rathi as the book running lead managers to the issue. Link Intime India Pvt Ltd has been appointed as the registrar to the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹660.00 Cr |
| Fresh Issue | --- |
| Offer For Sale(OFS) | ₹660.00 Cr |
| Opening Date | Dec 2, 2021 |
| Closing Date | Dec 6, 2021 |
| Face Value | ₹5 per equity share |
| Price Band | ₹530 to ₹550 per equity share |
| Lot Size | 27 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Dec 14, 2021 |
Purpose of the IPO
The company has opted for an IPO for the following reasons
- Offer for sale
- To achieve listing benefits
In Closing
In this post, we covered the Anand Rathi Wealth IPO Review. The Initial Public Offering opens on December 2nd and closes on December 6th. It is also important to note that Anand Rathi had earlier planned to go for an IPO in 2018. After filing its prospectus with the market regulator the company dropped its plans citing difficult market conditions.
For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of the company.
Do let us know what you think of the Anand Rathi Wealth IPO review. Are you planning to apply for this IPO or not?
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Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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