Anand Rathi Wealth IPO opens today: Here’s everything you need to know

Anand Rathi Wealth IPO: The Rs 660 crore initial public offering (IPO) of Anand Rathi Wealth will be available from December 2-6, 2021. It has a price band of Rs 530-550 per share.

Anand Rathi Wealth IPO: The initial public offering (IPO) of Anand Rathi Wealth, part of Mumbai-based financial services group Anand Rathi, opened for subscription today, December 2, 2021, at a price band of Rs 530-550 per share. The offer will be available till Monday, December 6, 2021.

Anand Rathi Wealth operates in the financial services industry with a focus on mutual fund distribution and sale of financial products.

The company commenced operations in fiscal 2002 and is a registered mutual fund distributor with AMFI (Association of Mutual Funds of India). It has evolved into providing well-researched solutions to its clients through a mix of wealth solutions, financial product distribution and technology solutions.

Through the offer, Anand Rathi Wealth aims to raise Rs 660 crore. The IPO is purely an offer for sale (OFS) of 1.2 crore equity shares by promoters and existing shareholders.

The OFS consists of 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.

Half of Anand Rathi Wealth IPO 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 issue also includes a reservation of 2.5 lakh equity shares for employees.

Investors who wish to subscribe to Anand Rathi Wealth IPO can bid in a lot of 27 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,850 to get a single lot of Anand Rathi Wealth. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Tuesday, December 7, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

Equirus Capital, BNP Paribas, IIFL Securities and Anand Rathi Advisors are the book running lead managers to the offer while Link Intime India is the registrar of the issue.

From March 31, 2019, until August 31st this year, the Anand Rathi Wealth’s Asset Under Management (AUM) has grown at a CAGR (Compound Annual Growth Rate) of 22.74 per cent to Rs 302.09 billion. Till August this year, the company’s flagship Private Wealth vertical catered to 6,564 active client families across the country.

In addition to the Private Wealth vertical, the company has two new-age technology-led business verticals – Digital Wealth and Omni Financial Advisors.

Before heading into the IPO, Anand Rathi Wealth raised nearly Rs 194 crore (Rs 1,93,87,50,000) from 19 anchor investors in lieu of 35,25,000 equity shares at Rs 550 each, data from the stock exchanges showed.

The anchor investors include the likes of SBI Mutual Fund (MF), ICICI Prudential MF, Franklin Templeton MF, DSP MF, Kotak MF, Invesco MF, Canara Robeco MF, Nippon India MF, Abakkus, Quant MF, Cohesion MK and Rajasthan Global Securities.

The share allotment is likely to take place on Thursday, December 9, 2021, and the shares are expected to be listed on Tuesday, December 14, 2021, according to the timeline given in the red herring prospectus (RHP).

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