Emkay Global Financial IPO report on Anand Rathi Wealth
Anand Rathi Wealth Ltd (“ARWL”) is one of the leading non-bank wealth solutions firms in India and has been ranked as one of the three largest non-bank mutual fund distributors in the country by gross commissions earned in Fiscal 2019, 2020 and 2021. It has achieved a dominant position in the distribution of financial products, with a focus on the growing HNI segment through an uncomplicated, holistic and standardized offerings, delivered through an entrepreneurial team of private wealth professionals, known as Relationship Managers (“RMs”). ARWL will launch its IPO on 2nd December, 2021 (Thursday) with an issue size of Rs6.6bn and market cap of Rs22.89bn at the higher end of price band of Rs530-550.
Valuation and Outlook
The non-annualized EPS for the five months ending Aug 2021 stands at Rs12.25 v/s FY21 EPS of Rs10.85 which has been considered in the above exhibit. This needs to be factored in assessing the likely forward price multiples. As such, we recommend a subscribe rating on the IPO issue.
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