Anand Rathi Wealth Management IPO (Initial Public Offering) is all set to be available for purchase amid the IPO-packed week. Rakesh Jhunjhunwala’s Star Health Insurance launched on November 30, and Tega Industries launched on December 1 are a few reputed IPOs that will compete with Anand Rathi IPO.
The initial public offering of Anand Rathi, the biggest non-banking wealth solution firm in India, is expected to raise Rs 660 crore through its IPO bidding. The recently launched and much-talked IPOs, including Nykaa, Policy Bazar and Zomato, have received overwhelming responses and raised many companies’ interest in going public. Anand Rathi Wealth Management IPO will be the 56th IPO in the soon-to-over year 2021.
More Details About Anand Rathi Wealth Management IPO
Anand Rathi Wealth Management IPO will be purely an OFS (Offer For Sale) sale of 1.2 crore shares. According to the official statement of the wealth management company, its current stakeholders include Anand Rathi, Amit Rathi, Supriya Rathi, Pradeep Gupta, Preeti Gupta, Firoz Aziz, and Rawal Family Trust will sell off their 92.85 lakh shares in the company. Jugal Mantri is also selling off his 90,000 shares.
The stock sell includes half of the shares reserved for Qualified Institutional Buyers, 15 percent shares reserved for the Non-Institutional Buyers. Additionally, the Anand Rathi Wealth management IPO has kept 2.5 lakh shares reserved for the company’s employees at Rs 25 discount apiece on the final issue price. At the same time, 35 percent of the total shares are reserved for retail buyers.
Price Band and Lot Size Of Anand Rathi Wealth Management IPO
The Anand Rathi Wealth Management IPO price is set between Rs 530-550 apiece. On the other hand, the GMP (Grey Market Price) of the IPO is trading at a premium of Rs 125 to the price decided by the IPO company. So, the GMP price of Anand Rathi shares will be 550+125 = Rs 675, which is 20 percent more than the actual value of one share.
One lot of the IPO will comprise twenty-seven shares. The interested subscribers will have to purchase a minimum of one lot at the upper value of Rs 550 per share for Rs 14,850.
When Will The Anand Rathi Wealth Management IPO Launch?
The Anand Rathi Wealth Management IPO will be available for bidding on December 2, 2021. The three-day-long IPO will conclude on December 6 and is expected to bring 660 crores to the Anand Rathi Group at the upper share value set at Rs 550 per share.
Also, the company is expected to list on The NSE and BSE exchanges by December 14. Here is the schedule for the Anand Rathi Wealth Management IPO proceeding:
Anand Rathi IPO launch date: December 2, 2021
IPO end date: December 6, 2021
Share Allotment beginning date: December 9, 2021
Refund initiation date: December 10, 2021
Allotment date: December 12, 2021
BSE and NSE Listing Date: December 14, 2021
Also Read: 4 big IPOs to look out for in 2022
Brokerage Reaction On Anand Rathi Wealth Management IPO:
According to the brokerage firm Marwadi Shares and Finance Limited, the company is one of India’s leading non-bank mutual fund distributors with a presence in Non-Convertible Market Linked Debentures. It is available at reasonable valuations when compared to its competitors. “Taking into account the FY-22 annualised EPS of Rs.29.46 on a post-issue basis, the firm is set to list at a price-to-earnings ratio of 18.67x with a market capitalization of Rs.22,889 million, whilst its competitor, IIFL Wealth Management, is trading at a price-to-earnings ratio of 24.59x (FY22 annualized). This initial public offering (IPO) has a “Subscribe” grade from us.”
About Anand Rathi Wealth
Anand Rathi Wealth, who began its operations in 2002, has spread over 11 cities across India and has one office in Dubai. The AMFI certified firm operates as a mutual fund distributor firm that provides comprehensive investment solutions to more than 6,500 active clients in a financial instrument.
The wealth management firm has earned a profit of Rs 45.09 crore in the current year and Rs 265.23 in the same year. Anand Rathi Group had previously applied for IPO in 2018, but they withdrew the application later.