Anand Rathi IPO: The company's issue has a price band of Rs 530-550 and will close on December 4.
Anand Rathi IPO: The issue of Anand Rathi is open for subscription today i.e. on 2nd December and will close on 4th December. India's leading non-banking wealth solutions company has issued an IPO of Rs 600 crore.
The company's issue price band is Rs 530-550. As per the upper price band, Anand Rathi Wealth is raising around 660 crores from this IPO. This IPO is purely offer-for-sale (OFS).
Under this offer-for-sale (OFS), the existing shareholders of the company will sell their 12 million equity shares.
In the offer for sale, Anand Rathi Financial Services will sell 92.85 lakh equity shares and 3.75 lakh shares each of Anand Rathi, Pradeep Gupta, Amit Rathi, Preeti Gupta, Supriya Rathi, Rawal Family Trust and Firoz Aziz.
Apart from this, Jugal Mantri will sell 90,000 shares. In this issue 2.5 lakh shares have been kept in reserve for the employees of the company.
Under this IPO, 2.5 lakh equity shares have been kept in reserve for the employees of the company, who will get these shares at a discount of Rs 25 on the final issue price.
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About 50% of the IPO has been earmarked for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors and the remaining 35% for retail investors.
Investors can bid in lots for Anand Rathi Wealth IPO. The company will have about 27 shares in one lot. A maximum of 13 lots can be bid.
According to the upper price band of the IPO, an investor will have to invest Rs 14,850 to bid a lot. Whereas investors bidding for maximum 13 lot size will have to invest Rs 1,93,050.
What should investors do?
According to Mint, Ravi Singh, Vice President and Head of Research, ShareIndia, said that India's banking and financial services (BFSI) sector has a lot of growth potential.
Increased retail customer participation in capital market-linked businesses has opened up new opportunities.
However, the sentiments in the current market are not in favor of BFSI yet. Even the BFSI sector has been hit hard. The valuation of Anand Rathi Wealth is very high.
What does the company do?
Anand Rathi Wealth does business in the financial services industry. Its focus is on mutual fund distribution and sales of other financial products. The company started its business in 2002 as an AMFI Registered Mutual Fund Distributor.
From March 31, 2019 to August 31, 2021, the company's Asset Management (AUM) has seen a growth of 22.74 percent on a yearly basis and has reached Rs 302 billion. As of August 2021, the company's flagship wealth vertical had 6564 clients across the country.
Let us tell you that before this in September 2018, the company had filed papers for IPO of Rs 285 crore with SEBI. However, later the company withdrew its steps and the IPO did not come in the market.