Anand Rathi Wealth to list tomorrow. Check out grey market premium, other details

Anand Rathi Wealth IPO

Anand Rathi Wealth, a leading non-bank wealth solutions firms in India, is set to debut on the bourses on December 14 after its public issue was subscribed nearly 10 times by investors.

The company’s shares were trading at a premium of Rs 50 in the grey market, as per data from IPO Watch, a day before the listing. That translates to a 10 percent premium on its issue price of Rs 530-550 per share.

The issue was open for subscription during December 2-6, and received healthy response from all categories, garnering bids for 8.29 crore equity shares against an IPO size of 84.75 lakh equity shares.

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The reserved portion for qualified institutional buyers (QIB) was subscribed 2.5 times and that of non-institutional investors saw 25.42 times subscription.

Retail investors subscribed 7.76 times and employees put in bids 1.32 times the portion set aside for them.

Axis Capital, Kotak Securities and Nirmal Bang had a ‘neutral’ rating on the issue, whereas ICICI Direct, Emkay Global and Marwari Shares recommended to ‘subscribe’.

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“Anand Rathi Wealth can list at flat to 10 percent listing gains. Short-term investors can consider an exit at these levels, while long-term investors can continue holding the company as the future potential growth in the business looks promising,” said Divam Sharma, Founder, Green Portfolio.

Emkay Global is positive on Anand Rathi Wealth due to its focus on the underserved and less price-sensitive HNI segment, its ability to offer uncomplicated, holistic and standardised solutions to clients based on an objective-driven approach, its presence in non-convertible market-linked debentures, and its focus on value-added services.

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The company is mainly into wealth management, through its private wealth (PW) vertical with total assets under management of Rs 29,472 crore as on August 31. The AUM comprises mutual fund schemes and other financial products such as bonds, MLDs and other securities held by clients in their own demat accounts.

In addition to the PW vertical, it has two new-age technology-led business verticals – Digital Wealth and Omni Financial Advisors.

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The company is present in 11 cities – Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida. It has a representative office in Dubai as well.