Anand Rathi Wealth Ltd IPO
IPO Subscription Details
- Open Date 02 Dec
- Close Date 06 Dec
- Lot Size 27
- IPO Size ₹ 660.00 Cr
- IPO Price Range ₹ 530 to ₹550
- Min Investment ₹ 14,310
- Listing Exchange NSE, BSE
- Basis of Allotment 09 Dec
- Refunds 10 Dec
- Credit to Demat Account 13 Dec
- Listing Date 14 Dec
Anand Rathi Wealth Ltd IPO Subscription Status
| Category | Subscription Status |
| Qualified Institutional (QIB) | 2.50 Times |
| Non-Institutional (NII) | 25.42 Times |
| Retail Individual | 7.76 Times |
| Employee | 1.32 Times |
| Total | 9.78 Times |
Anand Rathi Wealth IPO Subscription Details (Day by Day)
| Date | QIB | NII | Retail | Employee | Total |
| December 02, 2021 17:00 | 0.01x | 1.93x | 2.45x | 0.42x | 1.60x |
| December 03, 2021 17:00 | 0.17x | 3.06x | 4.77x | 0.66x | 3.02x |
| December 06, 2021 17:00 | 2.50x | 25.42x | 7.76x | 1.32x | 9.78x |
IPO Synopsis
The Anand Rathi Wealth Limited IPO is to open for subscription between 2 December and 6 December. The listing date is set as 14 December. Rs.530-Rs.550 per share has been set as the IPO price for this issue. The minimum amount to be invested in order to apply for 1 lot of shares (27 shares) is Rs.14,850. The issue consist of a pure offer for sale of up to 1,20,00,000 shares by the shareholders and promoters. 3.75 lakh equity shares each, are being offloaded by Anand Rathi, Pradeep Gupta, Amit Rathi, Supriya Rathi, Priti Gupta, Feroze Azeez and Rawal family trust. 92.85 lakh equity shares are being offloaded by Anand Rathi Financial Services Ltd and lastly, 90,000 shares are being offloaded by Mr. Jugal Mantri. The company is looking to raise approximately Rs.600 crores from this issue.
The book running lead managers to this issue are IIFL Securities, BNP Paribas, Equirus Capital and Anand Rathi Advisors Ltd. The promoters of the company are Anand Rathi, Pradeep Gupta and Anand Rathi Financial Services.
Objectives of the issue:
The main and only objective of the issue is to reap the benefits of being listed on the stock exchanges.
About Anand Rathi Wealth Ltd
Having been ranked among the top three non-bank mutual fund distributors in India, in terms of gross commission earned in FY20, Anand Rathi has been and is one of the leading non-bank wealth solutions firm in the country. Along with its Private wealth segment, the company also has two other technology led segments- Digital Wealth and Omni Financial Advisors (OFA). The company serves a wide array of clients through its mix of financial products, wealth solutions and technology solutions.
The DW vertical is a fin-tech expansion which caters to people with financial assets between Rs.1 million and Rs.50 million. The AUM for this vertical was Rs.6.12 billion as of 31 March, 2021. They have around 3,000 clients and 183 client engagement partners.
OFA provides a platform for Independent Financial Advisors (IFAs) to help their clients and also grow their business. Since its launch 5 years ago in September 2016, it reached a subscriber base of 5,000 subscribers as on 31 March, 2021. These 5,000 IFAs are handling around 1.5 million clients in totality.
As of 31 August 2021, the company’s asset under management stood at Rs.30,209 crore. More than 50% of the clients of Anand Rathi have been associated with them for over 3 years and the private wealth segment currently caters to around 6,564 active client across India, as of 31 August 2021. They are currently present in 11 cities across the country, namely; Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Noida, Chandigarh and Jodhpur. The company dominates in the distribution of financial products with special focus on the every growing HNI segment.
Anand Rathi Wealth Ltd Financial Status
|
Particulars (In Rs cr) |
FY21 |
FY20 |
FY19 |
|
Revenue from operations |
265.33 |
331.82 |
276.58 |
|
PAT |
45.11 |
61.61 |
58.43 |
|
EPS (In Rs) |
16.30 |
22.43 |
21.60 |
|
Particulars (In Rs cr) |
FY21 |
FY20 |
FY19 |
|
Total Assets |
339.44 |
409.06 |
230.82 |
|
Total Borrowings |
24.96 |
33.36 |
0.368 |
|
Equity Share Capital |
13.75 |
13.51 |
13.45 |
Peer Comparison: FY20 in Rs. Cr
|
Company |
Revenue |
PAT |
EBITDA |
PAT Margin (%) |
|
IIFL Wealth and Asset Management |
920 |
206 |
356 |
22.00% |
|
Anand Rathi Wealth Ltd |
336.4 |
61.6 |
111.3 |
18.00% |
|
Edelweiss Advisory |
861 |
162 |
NA |
18.00% |
|
Julius Baer Wealth Advsiors India Pvt Ltd |
106.3 |
-13.8 |
6.2 |
- |
|
Sanctum Wealth Management Pvt Ltd |
20.3 |
-35.1 |
-34.4 |
- |
|
Ask Investment Managers Pvt Ltd (FY 19) |
490.8 |
125.1 |
195 |
25.00% |
|
Centrum Wealth Management Ltd |
76.4 |
-36.9 |
-24.4 |
- |
|
Avendus Wealth Mangement Pvt Ltd |
57.1 |
-34.4 |
-32.3 |
-60.00% |
|
Motilal Oswal Wealth Management Pvt Ltd |
100.7 |
6.1 |
9.8 |
6.00% |
IPO Key Points
-
Strengths:
1. The private wealth segment focuses mainly on the segment of people with financial assets between Rs.50 million to Rs.500 million. Even then, the company on-boards clients with a relationship value of minimum Rs.5 million. The HNI segment has been found to be less price senstive
2. The company uses an uncomplicated and objective driven approach and delivers holistic and standardized solution to their clients
3. Their entrepreneurial work culture has allowed them to attract and most importantly, retain talent
4. The company has a very different approach to marketing wherein they invite prospective clients and a speaker talks about their proposition. Before the pandemic, these session were conducted physically by the relationship managers
-
Risks:
1. The revenues derives from the sale of financial products are wholly dependent on the ability of the company to increase the asset under management and the performance of the distributed funds. If there are any changes in the expense ratio due to regulatory changes, the amount of commission income distributed may decrease which will adversely affect the financials of the company
2. Any competition from existing or new market participants will affect the market share of the company and in turn affect the operational results
3. 34.01% of the revenue (FY21) comes from mutual fund distribution from asset management companies and if these distribution agreements are terminated without any notice, it will have a material effect on the business and its financials
4. The brand name “Anand Rathi” and the strength and reputation it has is part of the reason for high revenues and good financial performance -
Key Strategies:
1. The company plans to capitalize on the opportunities available in the market and partake in geographical expansion
2. Increasing the number of relationship managers along with addition of more experienced relationship managers as they are the building blocks for a successful future
3. Promotions and increased focus on brand visibility through an increased digital focus
How to apply for IPO?
-
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Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
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Please keep below documents handy:
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IPO FAQs
What is the issue size of Anand Rathi Wealth Ltd IPO?
The Anand Rathi IPO issue size is around Rs.600 crore.
What is the maximum number of shares of the Anand Rathi Wealth Ltd IPO that I can apply for?
The maximum is 13 lots- 351 shares, worth Rs.1,93,050
How many shares will I get in 1 lot?
1 lot of Anand Rathi Wealth Ltd IPO has 27 shares.
When will the share be listed on the stock exchanges?
On December 14th, 2021, Anand Rathi Wealth Ltd will be listed on the stock exchanges.
Where is Anand Rathi Wealth Ltd IPO going to be listed?
Anand Rathi will be listed on NSE and BSE both.
What is the price of each share going to be?
The price range set for each share of Anand Rathi Wealth Ltd, is Rs.530-Rs.550 per share.
Who is the registrar to the offer?
Link Intime India Pvt Ltd is the registrar to the Anand Rathi Wealth Ltd IPO.
What is the pre issue shareholding of the promoters of Anand Rathi Wealth Ltd?
The pre issue shareholding will stand at 74.96%.
How do I check the allotment status?
Way to check 1- First you need to go to the registrar’s site- Link Intime India Pvt Ltd and then visit the IPO allotment page. From the drop down menu, select Anand Rathi Wealth Ltd. Then, enter your PAN card details and select the application type- ASBA or Non-ASBA and enter the required details. After this the status is displayed on the screen.
Way to check 2- Visit the BSE application website page, select equity and then select Anand Rathi Wealth Ltd from the drop down menu. After entering your PAN card details and application number, the status is displayed on the screen.
What is the minimum investment required?
The minimum investment required to apply for the Anand Rathi Wealth Ltd IPO is Rs.14,850.
It is the upper range of the IPO price i.e. Rs.550*27 shares (1 lot). Minimum investment in an IPO is the amount of money that you need to invest in order to receive 1 lot of shares of the IPO. The number of shares in 1 lot varies from IPO to IPO but normally, the minimum investment value is calculated by multiplying the number of shares in 1 lot with the upper price range of the IPO price per share.
Contact Details of Anand Rathi Wealth Ltd IPO
Contact Information
Anand Rathi Wealth Limited
Express Zone, A Wing, 10th Floor,
Western Express Highway, Goregaon (E),
Mumbai 400 063, Maharashtra, India.
Phone: +91 (22) 6281 7000
Email: csarwsl@rathi.com
Website: https://rathi.com/Wealth/index.php
Anand Rathi Wealth Ltd IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: anandrathi.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Anand Rathi Wealth Ltd IPO Lead Manager
Anand Rathi Securities Limited
BNP Paribas
Equirus Capital Private Limited
IIFL Securities Ltd
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