Anand Rathi Wealth IPO ends with good subscription
Published on Dec 07, 2021 11:56
The initial public offer (IPO) of Anand Rathi Wealth received bids for 8,29,21,509 shares as against 84,75,000 shares on offer. The issue was subscribed 9.78 times.
The non institutional investors category was subscribed 25.42 times. The retail investors category was subscribed 7.76 times. The qualified institutional buyers category was subscribed 2.50 times.
The issue opened for bidding on 2 December 2021 and it closed on 6 December 2021. The price band of the IPO was fixed at Rs 530-550 per share.
The IPO consisted entirely of an offer of sale (OFS) comprising of 1.20 crore equity shares. Among the promoters, Anand Rathi Financial Services has offered 92.85 lakh equity shares for sale, while Anand Rathi and Pradeep Gupta have offered 3.75 lakh equity share each for sale. Among promoters group, Amit Rathi and Priti Gupta have offered 3.75 lakh equity share each for sale.
The promoters and promoter group shareholding will decline from 74.74% to 48.82% post IPO.
The company expects to receive the benefits of listing of the equity shares, including to enhance visibility and brand image among existing and potential customers.
Ahead of the IPO, Anand Rathi Wealth on Wednesday, 1 December 2021, finalized allocation of 35.25 lakh equity shares to anchor investors at an allocation price of Rs 550 per share, aggregating to Rs 1,93,87,50,000.
Anand Rathi Wealth is a non-bank wealth solutions firms in India which serves a wide spectrum of clients through a mix of wealth solutions, financial product distribution and technology solutions. The services are provided primarily through flagship Private Wealth (PW) vertical. Overall, the company manages Rs 30,209 crore in AUM as of August 2021.
The company acts as a mutual fund distributor, registered with the Association of Mutual Funds in India. It distributes mutual fund schemes managed by asset management companies and earns distribution commissions on a trail basis from asset management companies. It purchases non-convertible market linked debentures (MLDs) and offers them to its clients and earns income from these sales. Therefore, the AUM of the company comprises mutual fund schemes and other financial products such as bonds, MLDs and other securities held by clients in their own de-mat accounts.
The company has achieved a dominant position in the distribution of financial products, with a focus on the growing HNI segment through an uncomplicated, holistic and standardized offering, delivered through an entrepreneurial team of private wealth professionals, known as Relationship Managers (RMs). The company commenced activities in FY2002 as an AMFI registered mutual fund distributor and have evolved into providing, well researched solutions to its clients by facilitating investments in financial instruments through an objective driven process.
The company reported a consolidated net profit of Rs 51.07 crore and sales of Rs 166.93 crore in the five months ended August 2021.
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