Anand Rathi Financial Services is one of the leading non-banking wealth management firms in India and one among the top 3 non-banking mutual fund distributors in the country. The company’s focus is on distributing mutual funds and selling other financial products.
Anand Rathi Wealth’s IPO is opening on 2nd December. This IPO will be open for subscription from 2nd December to 6th December, 2021.
If you are thinking of investing money in it, then it is important to know its details first. According to IPOWatch, the company’s gray market premium for the IPO is currently Rs 125.The price band for Anand Rathi Wealth issue has been fixed at Rs 530-550 per share. At the same time, it will have a lot size of 27 shares and its multiple. Investors are required to buy at least one lot. For that, it will be necessary to invest at least Rs 14850.The company plans to raise Rs 660 crore through the issue. This IPO will be purely Offer for Sale (OFS).
There will be an Offer for Sale (OFS) sale of 1.2 crore equity shares in Anand Rathi Wealth’s IPO. Under which the existing shareholders of the company will sell their stake. Anand Rathi Financial Services will sell 92.85 lakh equity shares in OFS. In this issue 2.5 lakh shares have been reserved for the employees of the company. The company is going to list at a P/E of around 18.67 with a market cap of Rs 2,289 crore, where its peer company namely, IIFL Wealth Management is trading at P/E of 24.59.
Functionality and Outlooks
The company is basically works on product portfolio management, financial product distribution, or mainly focuses vertically on Private Wealth Maximization where it managed Rs 29,472 crore as on August 2021 or its CAGR has increased 22.47 percent as on August 2021 as compared to 2019. The company’s debt-to-equity ratio is less than 1 i.e., 0.11 as of August 31, 2021, and the interest-coverage ratio is 23 times that of FY21.The company reported negative operating cash flow for fiscal year 2021.
Apart from Private Wealth Maximization, the company has come-up with new-age technology like, Digital Wealth (DW) and Omni Financial Advisors (OFA).
The company has expanded its offices in 11 cities in India:
Mumbai Bengaluru Delhi Gurugram
Hyderabad Kolkata Chennai Pune
Chandigarh Jodhpur Noida
Analysis and Subscription Status
Subscription Day 1
The stock is subscribed 1.60 times on the first day of sale on December 2
Retail investors: 0.42 times.
Institutional investors: 0.01 times.
Non-institutional investors: 1.93 times.
Employees: 0.42 times.
Subscription Day 2
The IPO is subscribed 3.02 times on the first day of sale on December 3
Institutional investors: 0.17 times.
Non-institutional investors: 3.06 times.
Retail investors: 4.77 times.
Employees: 0.66 times.
Listing And Allotment Status
Trading will commence from December 14, 2021 on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The allotment of shares will be finalized by December 9,2021 and the unsuccessful investors will be returned to their bank accounts by December 10, 2021.
What should to do?
If you want to invest in Anand Rath Wealth IPO, then it can be go for long term investments but, for investors who is planning for listing gain from IPO ,may get small gain.
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