The IPO of Anand Rathi Wealth opens today on December 2 and is open for subscription until December 6. The company is offering shares at a price Band of Rs 530 - Rs 550 per equity share bearing face value of Rs 5 each.
The Offer includes a discount of Rs 25 to Eligible Employees bidding in the Employee Reservation Portion. The Minimum Bid Lot is 27 Equity Shares and in multiples of 27 Equity Shares thereafter. The Floor Price is 106 times the face value of the Equity Share and the Cap Price is 110 times.
About Anand Rathi Wealth
The Company commenced activities in Fiscal 2002 and is AMFI registered mutual fund distributor and has evolved into providing well researched solutions to its clients through a mix of wealth solutions, financial product distribution and technology solutions to a wide spectrum of clientele. As per CARE Advisory Research, the Company has been ranked amongst one of the top three non-bank mutual fund distributors in India by gross commission earned in Fiscal 2021, 2020 and 2019.
Since March 31, 2019 till August 31, 2021, the Company's Asset Under Management (AUM) has grown at a CAGR of 22.74% to Rs 302.09 billion. As on August 31, 2021 the Company's flagship Private Wealth vertical catered to 6,564 active client families across the country. Over 50% of its clientele has been associated with Anand Rathi Wealth Limited for more than 3 years. The Company has paid dividend at the rate of 50% in Fiscal 2021 and had issued bonus shares in August 2016 and July 2021.
What the experts say on subscribing to the Anand Rathi Ipo?
Mr. Manoj Dalmia, founder and Director, Proficient Equities Private limited says that the company is India's leading Non-banking wealth solution at a price bank of Rs 530 to Rs 550. "The GMP is at Rs 125 which is positive and good growth prospects due to retailers taking part in capital markets. The assets under management of Rs 29472 crores in the private wealth sector is spread across vast geography in India. We recommendation to apply only if it is oversubscribed on the final day, with the majority being NII and anchor investors," Dalmia says.
Dr. Ravi Singh, head of Research and vice president, Share India says,"India's Banking and Financial Service (BFSI) sector is offering tremendous growth opportunities due to the increasing retail participation in the capital market-linked businesses. However, the current market sentiments are not favourable and BFSI sector is the worst hit. Anand Rathi Wealth is showing a high valuation and the listing band is at upper band. We suggest investors to ignore the subscription and watch the company's future growth," he notes.
Equirus Capital Private Limited, BNP Paribas, IIFL Securities Limited and Anand Rathi Advisors Limited are the book running lead managers to the Offer
Investing in equities, including Initial Public Offerings poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.