Anand Rathi Wealth Limited is one of the leading non-bank wealth solutions firms in India and has been ranked amongst the top three non-bank mutual fund distributors in India by gross commission earned in Fiscal 2020. The firm serves a wide spectrum of clients through a mix of wealth solutions, financial product distribution, and technology solutions. The non-banking wealth solution provider has an asset under the management of Rs 260.58 billion. The AuM is a sum of (i) all third-party assets that generate commissions or incomes, which could be upfront and/or on a trial basis, and (ii) custody assets of our Clients (we do not include clients that merely have a custody account i.e. a Demat account with us, but have no wealth assets such as mutual funds).
The firm is aiming to raise Rs 660 cr through its initial public offering. The IPO is entirely offered for sale. The firm will not receive any proceeds. Anand Rathi financial services limited will shed 9,285,000Equity shares, while Mr. Anad Rathi himself will sell 375,000 shares. To add to this another promoter named Mr. Pradeep Gupta will sell 375,000. Mr. Amit Rathi and Ms. Priti Gupta will sell 375,000 shares each. Ms. Supriya Rathi and Rakesh Rawal will shed 375,000 shares and 90,000 shares, respectively. 375,000 shares will be shed by Rawal Family trust and more, 375,000 shares will be sold by Mr. Jugal Mantri.
The primary focus of the firm is to achieve the benefit of listing on NSE and BSE. The window for the sale of shares has opened from the 2nd of December, and the last date to apply for the IPO is 6th December, 2021. The allotment date for the IPO is 9 December 2021. In case the investor is not allotted any shares, the blocked amount will be refunded on 10th December 2021. The firm will be listed on exchanges on the 14th of December,2021. Retail investors can invest a minimum of Rs 14,850 by buying one lot consisting of 27 shares and a maximum of Rs1,93,050, for 13 lots cumulating to 351 shares. Grey market premium for Anand Rathi IPO is at Rs135.
Anand Rathi, founded in the year 1994 is one of the leading companies in its sector and has a positive reputation in the market. The firm is financially sound which is evident by looking at its financial records for the past three years. Anand Rathi in the year 2021 reported a net profit of Rs 451.1 million. The current ratio improved to 1.74 in FY2021 from 0.94 times reported a year ago. The company also has enough cash backing. Cash and cash equivalent of Anand Rathi Wealth were recorded at Rs 653.18 million up by 131.18% from Rs 282.54 million of cash reported in FY2020.
It is one of the top 3 mutual fund distributors in India and its strong financial number, makes the IPO a favorable investment option. However, investors must do their research before taking any call on investment. All the investments in the stock market are subject to market risk.