IPO: Anand Rathi Wealth Lists At 9 Per Cent Premium Over Issue Price

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

The IPO of Anand Rathi Wealth consisted entirely of an offer of sale comprising of 12 million equity shares

New Delhi: Anand Rathi Wealth, a leading non-bank mutual fund distributor and wealth solutions firm, made a decent debut as the stock listed with a 9.46 per cent premium on Tuesday.

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. A combined around 4 million equity shares changed hands on the BSE and NSE in early trades.

Anand Rathi Wealth’s initial public offering (IPO) had received good response from the investors, with issue subscribed 9.78 times. The reserved portion for qualified institutional buyers was subscribed 2.5 times, and that of non-institutional investors saw 25.42 times subscription, while retail investors allotted quota being subscribed 7.76 times, data shows.

The IPO consisted entirely of an offer of sale (OFS) comprising of 12 million equity shares. The promoters and promoter group shareholding will decline from 74.74 per cent to 48.82 per cent after the IPO.

The company 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 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 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.

According to some analysts, the issue given its strong fundamentals, healthy return ratios and strong AUM growth.

Anand Rathi Wealth acts as a mutual fund distributor, registered with the Association of Mutual Funds in India. The company distributes mutual fund schemes managed by asset management firms and earns distribution commissions on a trial basis from asset management companies.