Anand Rathi IPO: The IPO of Anand Rathi Wealth Limited, a unit of Mumbai-based financial services group Anand Rathi, has opened today (2 December 2021). Subscription will close on 6th December. The company said on Tuesday that a price band of Rs 530-550 per share has been fixed for the IPO. The company wants to raise Rs 660 crore through this IPO. This IPO will be purely Offer for Sale (OFS), that is, fresh shares will not be issued in it. At present, the price of its shares is increasing in the gray market. It seems that this IPO can get good response from investors.
Shares will be sold under OFS
The sale of 1.2 crore equity shares on behalf of the promoters and existing shareholders of the company will be done under the OFS. At the same time, 92.85 lakh equity shares will be sold by Anand Rathi Financial Services under OFS. There will be sale of 3.75 lakh equity shares each by Anand Rathi, Pradeep Gupta, Amit Rathi, Preeti Gupta, Supriya Rathi, Rawal Family Trust and Firoz Aziz. Apart from this, Jugal Minister will sell 90,000 equity shares. Under this issue 2.5 lakh equity shares have been reserved for the employees. The initial share sale under the upper price band is expected to raise Rs 660 crore.
How much share is reserved in which category?
Half of the issue size is reserved for Qualified Institutional Buyers (QIBs), 15 percent for non-institutional investors, and 35 percent for retail investors. Investors can invest in lots of 27 shares in this IPO, that is, according to the upper price band, investors will have to invest at least Rs 14,850.
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What does the company do?
Anand Rathi Financial Services Group focuses on mutual fund distribution and sales of financial products in the industry. The company started operations in FY 2002 as AMFI Registered Mutual Fund Distributor. The Asset Under Management (AUM) of the company has grown at a CAGR of 22.74 per cent to Rs 302.09 billion from 31 March 2019 to 31 August 2021. As of August 2021, the company’s flagship private wealth vertical has 6,564 active client families across the country.
Apart from the private wealth vertical, the company has two new age technology business verticals – Digital Wealth and Omni Financial Advisors.
Equirus Capital Private Limited, BNP Paribas, IIFL Securities Limited Anand Rathi Advisors Limited have been appointed as Merchant Bankers to advise the Company on the IPO. The equity shares of the company will be listed on BSE and NSE. Earlier in September 2018, the company had filed a draft paper with SEBI to raise Rs 425 crore through IPO. However, later the firm withdrew its proposed public issue.
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