Anand Rathi Wealth Limited IPO

Anand Rathi Wealth is one of the leading non-bank wealth solutions firms in India and it is one among the top three non-bank mutual fund distributors in India by gross commission earned in fiscal year 2019, 2020 and 2021, according to CARE Research. The company provides wealth solutions, financial product distribution and technology solutions to their customers.

The wealth management company acts as a mutual fund distributor, registered with the Association of Mutual Funds in India. It distributes mutual fund schemes managed by asset management companies and earns distribution commissions on a trail basis from asset management companies. Furthermore, it purchases non-convertible market linked debentures (“MLDs”) and offers them to its clients and earns income from these sales.

Anand Rathi’s flagship Private Wealth (“PW”) vertical manages Rs 294.72 billion in asset under management (AUM) as on August 31, 2021. Its PW vertical caters to 6,564 active client families, serviced by a team of 233 relationship managers.

They also have two more verticals – Digital Wealth (DW) and Omni Financial Advisors (OFA).

The DW vertical addresses the large mass affluent segment (i.e. group of individuals with financial assets between Rs 10 lakh to Rs 5 crore) present in the market with a wealth solution delivered through a phygital channel. As of August 31, 2021, the AUM for its DW vertical stood at Rs 738 crore with 3,491 clients and 195 client engagement partners.

The company’s OFA vertical provides a technology platform for Independent Financial Advisors (“IFAs”) to service their clients and expand their business. Within a short period of over five years since its launch in September, 2016, it has become India’s leading technology platforms for IFAs in terms of subscribers with 5,062 IFAs, as of August 31, 2021. These IFAs handle around 1.63 million clients.

They are currently present in 11 cities across India, namely, Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida. In addition, they also have a representative office in Dubai.