The company is planning to mop up Rs 660 crore through its IPO that is entirely an offer for sale of 1.2 crore equity shares by promoters.
The initial public offering of Anand Rathi Wealth, one of the leading non-bank wealth solutions firms in India, has subscribed 160 percent as it received bids for 1.36 crore equity shares against the IPO size of 84.75 lakh equity shares on December 2.
The company reduced its offer size to 84.75 lakh equity shares from 1.2 crore equity shares after raising Rs 194 crore from anchor investors on December 1, a day before the IPO opened for subscription.
The portion set aside for retail investors was subscribed 2.45 times, and that of employees 42 percent.
Non-institutional investors bought 193 percent of the equity shares reserved for them, while qualified institutional investors bought 17,658 shares out of the 23,50,000 shares allotted to them.
The company is planning to mop up Rs 660 crore through its IPO that is entirely an offer for sale of 1.2 crore equity shares by promoters. Hence, the funds raised will go to selling shareholders. The price band for the offer, which closes on December 6, has been fixed at Rs 530-550 per equity share.
Also read - Anand Rathi IPO: 10 things to know before subscribing the issue
"At the upper price band of Rs 550, the issue has been valued at a P/BV (price-to-book value) and a P/E (price-to-earnings) multiple of 9.4x and 51x to its FY21 NAV of Rs 58.5 and EPS of Rs 10.9 respectively," said Arihant Capital Markets.
"The company has strong fundamentals, healthy return ratios, and has recorded strong AUM growth. The pricing of the IPO is a tad expensive compared to its peers, however, we recommend that investors subscribe for listing gains," the brokerage added.
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Anand Rathi Wealth has been ranked among one of the three largest non-bank mutual fund distributors in India by gross commission earned. It offers Private Wealth (PW) services, wherein it managed Rs 29,472 crore assets under management (as of H2FY22). It also acts as a mutual fund distributor associated with AMFI.
It has a dominant presence in the distribution of financial services, with a focus on the HNI segment, which it believes is highly underserved. The company offers relationship management services, estate planning, succession planning and creates wills for the same.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.