The initial public offer (IPO) of Anand Rathi Wealth is all set to kick start from December 2, 2021.
The initial public offer (IPO) of Anand Rathi Wealth is all set to kick start from December 2, 2021. The three-day Rs 660-crore IPO will conclude on December 6.
Anand Rathi Wealth, part of Mumbai-based financial services group Anand Rathi, on Tuesday said it has fixed a price band of Rs 530-550 a share for its Rs 660-crore IPO, which will open for public subscription on December 2. The three-day initial public offering (IPO) will conclude on December 6, the company said.
Should you subscribe?
As the issue opens on Thursday, it must be playing on the minds of investors that whether they should subscribe to the issue or not in an IPO-heavy week. This week we have three IPOs running from Rakesh Jhunjhunwala-backed Star Health and Allied Insurance Co. Ltd to Tega Industries IPO, the week is buzzing with activities in the primary market.
Speaking of what should investors do? Marwadi Shares and Finance Limited has given a subscribe rating for this IPO.
The brokerage house said the company is one of the leading non-bank mutual fund distributors in India with a presence in Non-Convertible Market Linked Debentures and is available at reasonable valuations as compared to its peer. “Considering the FY-22 annualized EPS of Rs.29.46 on the post-issue basis, the company is going to list at a P/E of 18.67x with a market cap of Rs.22,889 mn, while its peer namely IIFL Wealth Management is trading at P/E of 24.59x (FY22 annualized). We assign a “Subscribe” rating to this IPO.”
The initial share sale is entirely an offer for sale (OFS) of 1.2 crore equity shares by promoters and existing shareholders.
The OFS consists of the 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.
The issue includes a reservation of 2.5 lakh equity shares for employees.
At the upper end of the price band, the initial share sale is expected to fetch Rs 660 crore.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, while 35 per cent has been set aside for retail investors.
The Investors can bid for a minimum of 27 equity shares and in multiples of thereafter.
Anand Rathi Wealth IPO Timeline
Application start date: December 2, 2021
Application end date: December 6, 2021
Allotment beginning date: December 9, 2021
Refund initiation date: December 10, 2021
Allotment date: December 12, 2021
Listing Date: December 14, 2021
About the company
Anand Rathi Wealth operates in the financial services industry with a focus on mutual fund distribution and the sale of financial products. The company commenced activities in fiscal 2002 and is AMFI registered mutual fund distributor. It 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.
