The public offer of Anand Rathi Wealth, one of the leading non-bank wealth solutions firms in India, has garnered bids for 2.55 crore equity shares as against an IPO size of 84.75 lakh units, subscribing 3.02 times on December 3, the second day of bidding.
The portion set aside for retail investors and non-institutional investors was subscribed 4.77 times and 3.06 times, respectively. Employees have put in bids for 66 percent shares of their allotted quota, while qualified institutional buyers bought 17 percent of shares reserved for them.
Anand Rathi Wealth, which has been ranked among one of the three largest non-bank mutual fund distributors in India by gross commission earned in the last three fiscals, plans to mop up Rs 660 crore through its public issue that comprised entirely an offer-for-sale of 1.2 crore equity shares. The company mobilised Rs 194 crore from anchor investors on December 1. The price band of the offer is Rs 530-550 per equity share.
“The company is bringing the issue at a price-to-earnings (P/E) multiple of 19 on annualised five months ended August 2021 EPS,” said Hem Securities.
The company has focus on the underserved and less price sensitive HNI segment with uncomplicated, holistic and standardised solutions offered to clients based on an objective-driven approach. Also, the company, being one of the leading non-bank mutual fund distributors in India, coupled with presence in non-convertible market-linked debentures, has posted decent financial performance, said Hem Securities which, hence, recommended ‘subscribe’ for the issue.
Also read - Anand Rathi Wealth IPO — should you subscribe to it?
Its private wealth (PW) vertical focuses on the HNI (high networth individuals) segment with an assets under management (AUM) potential of Rs 5-50 crore, who are seeking quality and value addition rather than low-cost solutions. While the targeted AUM potential is above Rs 5 crore, the company typically on-boards clients with a relationship value of a minimum of Rs 0.5 crore. Through its uncomplicated, standardised and well-researched approach, the client relationship value increases over a period of time.
The company distributes mutual fund schemes managed by leading asset management companies (AMCs) in India and receive commissions linked to the outstanding market value of financial assets procured by company.
Also read - Anand Rathi IPO: 10 things to know before subscribing the issue
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