Anand Rathi Wealth’s initial public offering (IPO) is expected to be open for subscription Thursday in a three-day first share sale. The wealth management arm of Anand Rathi Financial Services has set the price range for the issue at Rs 530-550 per share. The minimum auction lot is 27 stocks and multiples.
The sale of shares consists entirely of an offer to sell (OFS), with promoters and other shareholders discharging more than 1.2 crore of shares. At the higher end of the price bracket, the problem will reach over Rs 660 crore.
Anand Rathi Financial Services will sell Rs 92 lakh shares, while Anand Rathi, Pradeep Gupta, Amit Rathi, Supriya Rathi, Priti Gupta, Rawal Family Trust and Feroze Azeez will sell more than 3.75 lakh shares each. Jugal Mantri will sell over 90,000 shares.
Here are the key things to know about the Anand Rathi Wealth IPO:
: The IPO bidding process will start tomorrow December 2nd and end on December 6th. The allocation of shares will be finalized by December 9. , temporarily.
IPO price band: The IPO price range is Rs 530-550.
Lot size: Investors can bid on a lot of 27 shares and their multiple. Retail investors should invest a minimum of Rs 14,850 for a lot. And Rs 1.93 lakh for 13 lots.
Reservation: 50% of the offer is reserved for qualified investor buyers and 15% for non-institutional investors. The remaining 35% of the issue is reserved for retail investors. Almost 2.5 lakh shares are reserved for company employees. They will get shares with a discount of Rs 25 from the issue price.
Use of funds: The company wishes to benefit from the advantages of the stock market listing.
Company Profile: The company is the wealth management arm of Anand Rathi Financial Services. It is registered with the Association of Mutual Funds in India (AMFI) and focuses on the sale of financial products and the distribution of mutual funds. In its private wealth vertical (PW), the company manages assets worth over Rs 29,472 crore.
It is aimed at more than 6,500 client families with a team of 233 relationship managers. As of August 2021, nearly 50% of clients had spent more than three years with the company.
The company has two new era verticals, Digital Wealth (DW) and Omni Financial Advisors (OFA). DW vertical is a fintech extension aimed at individuals or groups of individuals with assets between Rs 10 lakh and Rs 5 crore. The OFA vertical provides a technology platform for independent financial advisers.
Its offices are located across the country in 11 cities, from Mumbai to Jodhpur to Kolkata to Chennai.
Finance: Anand Rathi Wealth’s profit increased from Rs 61.61 crore in fiscal year 2020 to Rs 45.09 crore this year. Income was also affected as it fell to Rs 265.33 crore from Rs 331.83 crore during the reporting period.
Main risks: Anand Rathi’s relationship managers are his strength. In the event that it fails to retain or attract key personnel, the business can take a hit. It also reports to one of its group companies, Anand Rathi Global Finance Limited (ARGFL). It is dependent on activities linked to structured products. So if ARGFL is facing some hardship, Anand Rathi Wealth can take a hit. These structured products contributed more than 60 percent of the company’s total sales.
Gray market premium (GMP): The company’s gray market premium for the IPO is currently Rs 125, according to data from IPO Watch.
(Edited by : Ajay Vaishnav)
First publication: STI