Shares of Anand Rathi Wealth, a non-bank wealth solutions firm, are expected to gain as much as 10 percent from their initial public offering price when they list on the exchanges on December 14, experts said.
“Anand Rathi Wealth can list at flat to 10 percent listing gains,” said Divam Sharma, founder of Green Portfolio.
The grey market premium on the company’s shares is at Rs 50 on the issue price of Rs 550 and the issue was subscribed 9.78 times, indicating 10 percent listing gains, according to Gaurav Garg, head of research at CapitalVia.
Anand Rathi shares traded at Rs 600 in the grey market, a 9.1 percent premium over the issue price of Rs 550 per share, as per IPO Watch and IPO Central.
“Anand Rathi Wealth should give good listing gains. Anand Rathi is an extremely attractive company in the lucrative financial intermediary space,” said Sonam Srivastava, founder of Wright Research.
Anand Rathi would be the 56th company to list on the bourses in 2021.
The company’s Rs 660 crore public issue during December 2-6 was well received by all categories of investors. The IPO was subscribed 9.78 times as non-institutional investors put in bids for 25.42 times the portion reserved for them and qualified institutional investors bought 2.5 times the shares available in their quota.
The part set aside for retail investors was subscribed 7.76 times and that of employees saw 1.32 times subscription.
The issue was entirely an offer for sale of shares by Anand Rathi Financial Services, Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust acting through Rakesh Rawal, Jugal Mantri, and Feroze Azeez. The company did not raise any money for itself.
Anand Rathi Wealth clocked a profit of Rs 45.09 crore in FY21, lower than Rs 61.61 crore in the previous year. Revenue declined to Rs 265.33 crore from Rs 331.83 crore. Profit for five-months ended August stood at Rs 51.08 crore on revenue of Rs 166.92 crore.
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The company started in FY02 as an mutual fund distributor registered with the Association of Mutual Funds in India and has evolved into providing well-researched solutions to clients by facilitating investments in financial instruments, with a presence in 11 cities in India and a representative office in Dubai.
It provides services primarily through its flagship private wealth vertical where it had Rs 29,472 crore of assets under management in August, which increased at a compound annual growth rate of 22.47 percent from FY19. Its private wealth vertical caters to 6,564 active client families, serviced by a team of 233 relationship managers.
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