Anand Rathi Wealth, one of the leading non-bank wealth solutions firms in India, will launch its maiden public offer for subscription on December 2. The price band for the offer, which closes on December 6, has been fixed at Rs 530-550 per equity share.
This will be the 56th initial public offering in 2021.
The IPO is entirely an offer for sale of 1.2 crore equity 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, as per the company's statement.
The offer includes a reservation of 2.5 lakh equity shares for the company's employees who will get these shares at a discount of Rs 25 to the final issue price.
The public issue will fetch the company Rs 660 crore at the upper price band.
Investors can bid for a minimum of 27 equity shares and in multiples of 27 equity shares thereafter. Retail investors can invest a minimum of Rs 14,850 for one lot and a maximum investment of Rs 1,93,050 for 13 lots.
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Half of the offer size is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 35 percent of the offer for retail investors.
Anand Rathi Wealth commenced activities in FY02 as an AMFI registered mutual fund distributor and has evolved into providing well researched solutions to clients by facilitating investments in financial instruments, with presence in 11 cities in India and a representative office in Dubai.
The company provides services primarily through its flagship Private Wealth (PW) vertical where it managed Rs 29,472 crore in AUM as on August 2021, which grew at a CAGR 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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As on August 2021, 54.69 percent of clients have been associated with the company for over 3 years, representing 73.55 percent of its total private wealth's assets under management (AUM).
Anand Rathi Wealth reported profit of Rs 45.09 crore in FY21, lower than Rs 61.61 crore in the previous year. Revenue also declined to Rs 265.33 crore from Rs 331.83 crore in the same period. Profit for five-month ended August 2021 stood at Rs 51.08 crore on revenue of Rs 166.92 crore.
After the close of the public issue on December 6, the basis of share allotment will be finalised by December 9. The funds will be refunded to unsuccessful investors by December 10 and equity shares will be credited to demat accounts of eligible investors by December 13.
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The trading in equity shares will commence on the BSE and NSE from December 14.
Equirus Capital, BNP Paribas, IIFL Securities and Anand Rathi Advisors are the book running lead managers to the offer. Link Intime India is the registrar to the offer.