06 Dec , 2021 By : Kanchan Joshi
Anand Rathi Wealth Ltd, part of Mumbai-based financial services group Anand Rathi, launched its initial public offering (IPO) last week on December 3 which concludes today. The price band has been fixed at Rs530-550 per share. The company raised Rs194 crore from anchor investors ahead of its IPO.
As on day 2, Anand Rathi Wealth IPO has been subscribed 3 times with retail category overbooked 4.77 times, non-institutional investors bid 3.06 times and QIBs 17%, BSE data showed.
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. Equirus Capital, BNP Paribas, IIFL Securities and Anand Rathi Advisors are the managers to the offer.
As per market observers, Anand Rathi Wealth shares have been available at a premium (GMP) of Rs120 in the grey market. The equity shares of the company are expected to listed on BSE and NSE on December 14.
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.
"Given the fundamentals and growth potential, valuation of (ARWL) looks reasonable, as at upper end of price band, the company is valued at ~7.5% AUM and ~18.7x EPS (annualised FY22E). The closest listed peer IIFL Wealth has over Rs2.2 lakh crore in AUM and trading at 25xFY22E (consensus) offers healthy growth potential too. We remain positive in the space and assign SUBSCRIBE rating to the IPO," said ICICI Securities in a note.
Though, the brokerage sees changes in regulatory environment may impact business and margins, increasing competition in wealth management space as key risk & concerns.
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