02 Dec , 2021 By : Kanchan Joshi
Anand Rathi Wealth Ltd, part of Mumbai-based financial services group Anand Rathi, will launch its initial public offering (IPO) today for public subscription and the three day share sale will conclude on December 6. The price band has been fixed at Rs530-550 per share. The company on Wednesday said it has raised Rs194 crore from anchor investors ahead of its IPO.
The initial share sale is entirely an offer for sale (OFS) of 1.2 crore equity shares by promoters and existing shareholders. At the upper end of the price band, the initial share sale is expected to fetch Rs660 crore.
As per market observers, Anand Rathi Wealth shares are available at a premium (GMP) of Rs130 in the grey market. The equity shares of the company are expected to listed on BSE and NSE on December 14.
“The price-to-earnings valuation at which the firm is raising money is 18.67, while the competitor IIFL Wealth demands a P/E of 24.59 from the market, so relatively, this issue is not that expensive. With the growing capital market in India, Financial Intermediaries have an excellent scope of growth which should make this IPO attractive from a growth perspective. I would recommend buying on this issue with caution about the broader market that can play spoilsport for IPOs," said Sonam Srivastava, Founder, Wright Research.
Anand Rathi Wealth operates in the financial services industry with a focus on mutual fund distribution and the sale of financial products. The company commenced activities in fiscal 2002 and is AMFI registered mutual fund distributor.
“The wealth management market has a great scope in India but the competition too is stiff. Moreover, the performance of such companies is in sync to overall market’s performance which is somewhat cyclical in nature. Based on super performance in recent period, we may see good interest for its IPO," said Abhay Doshi, Founder of UnlistedArena.com.
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