Non-bank mutual fund distributor and wealth solutions firm Anand Rathi Wealth made a good debut as the stock listed with a 9.46 percent premium on December 14.
The stock opened at Rs 602.05 against an issue price of Rs 550 per share on the BSE, while the opening price on the National Stock Exchange was Rs 600.
Anand Rathi Wealth offers two types of services – private wealth where it manages Rs 29,472 crore assets under management as of second half of FY22, and purchases of non-convertible, market-linked debentures (MLDs) which are offered to clients. It has a dominant presence in the distribution of financial services, with a focus on the HNI segment that they believe is highly underserved.
The first public offer of Anand Rathi saw a decent subscription of 9.78 times during December 2-6. Non-institutional investors bought shares 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 company has mopped up Rs 660 crore through the public issue that was entirely an offer-for-sale by promoters. The price band for the offer was Rs 530-550 per equity share.
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Most analysts recommended the issue given its strong fundamentals, healthy return ratios and strong AUM growth.
“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. Hence we recommend ‘subscribe’ on issue,” said Hem Securities.
Marwadi Financial Services had also assigned subscribe rating to this IPO. “It is available at reasonable valuations as compared to its peer,” it said.
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