Anand Rathi Wealth Limited, a wealth management and financial services company, is set to open for subscription of its initial public offering (IPO) on December 2 and close on December 6, 2021.
The company is planning to raise Rs 660 crore through the sale of 1.2 crore equity shares in the IPO. The IPO comprises of only Offer For Sale by promoters and selling shareholders. The price band is fixed between Rs 530 and Rs 550 per equity share. The face value is Rs 5 apiece.
The IPO includes a reservation of 2.5 lakh equity shares for the company’s employees, who will get the shares at a discount of Rs 25 to the final issue price.
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.
Focus on the underserved and less price sensitive high net worth individual (HNI) segment.
Holistic and standardized solutions offered to clients based on an objective-driven approach.
Presence in non-convertible market linked debentures.
Rendering value added services such as safety net and estate planning services.
Strategic approach to the marketing initiatives.
Anand Rathi, Pradeep Gupta and Anand Rathi Financial Services Limited are the promoters of the company.
For the period ended (Rs in crore)
Apr-Aug of FY22
Profit After Tax
Purpose of the IPO
The company plans to achieve the benefits of listing on the stock exchanges. The net proceeds from the Offer For Sale will go to selling shareholders and the company shall not receive any proceeds from the Offer For Sale.
The company believes the listing will enhance their brand name and provide liquidity to the existing shareholders.
IPO Opening Date
December 2, 2021
IPO Closing Date
December 6, 2021
Book Built Issue IPO
Rs 5 per equity share
Rs 530 to Rs 550 per equity share
Min Order Quantity
IPO Lot Size
Amount in Rs (Cut-off)