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How Did Anand Rathi Wealth IPO Perform on Day 3?

05 August 20226 mins read by Angel One
How Did Anand Rathi Wealth IPO Perform on Day 3?
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Anand Rathi IPO was subscribed 9.78 times as of 6 December 2021. The public issue of this Mumbai-based company received bids for 8,29,21,509 shares. The total number of shares reserved was 84,75,000. This company expected to raise funds worth Rs. 660 crores at the upper end of the IPO price band.

Established in 1994, Anand Rathi is one of India’s leading mutual fund distributors in the non-bank segment. This company has a multifaceted product portfolio. Its offerings include technology and wealth solutions. Furthermore, it engages in the distribution of financial products.

Anand Rathi IPO didn’t include fresh issuance of equity shares; it comprised only an offer-for-sale of 1.2 crore shares.

To know how this initial share sale performed on the third and final bidding day, read on!

Anand Rathi IPO Performance: Day 3

Let’s check out how Anand Rathi Wealth IPO performed across different investor segments:

  • Retail individual investors (RIIs) placed bids for 3,19,00,851 equity shares. Whereas a total of 41,12,500 shares were allotted for them.
  • The Qualified Institutional Buyer (QIB) category received bids for 58,83,435 The total number of shares reserved for this segment was 23,50,000.
  • Non Institutional Investors (NII) sought 4,48,08,147 That said, the allotted portion for this investor category comprised 17,62,500equity shares.
  • Out of the 2,50,000 shares that were reserved for the employee segment, bids were received for 3,29,076 shares.

The table below shows how many times the public issue was subscribed across different investor segments on day 3:

RII QIB NII Employee Total
7.76 times 2.5 times 25.42 times 1.32 times 9.78 times

On 1 December, before the IPO went live, Anand Rathi raised funds worth Rs. 193.87 crores from anchor investors. After consulting its book running lead managers, the company allotted a total of 35.25 lakh shares for anchor investment at Rs. 550 per unit.

Here’s a list of the investors that took part in the anchor book:

  • Cohesion MK
  • Abakkus Growth Fund-1
  • Quant Mutual Fund
  • SBI Mutual Fund
  • Franklin India Smaller Companies Fund
  • ICICI Prudential
  • Rajasthan Global
  • DSP Smallcap Fund
  • Canara Robeco Mutual Fund
  • Kotak Mutual Fund
  • Nippon Life
  • Invesco India Tax Plan

Out of the 35.25 lakh shares that were allocated to anchor investors, 31,58,022 units were allotted to mutual funds via schemes encompassing Rs 173.69 crores.

The initial public offering of this company opened for subscription on 2 December 2021. Anand Rathi Wealth had fixed the price band of its public issue at Rs. 530-550 per equity share. By going public, it aims to reap the benefits of listing its shares on the bourses.

Anand Rathi IPO – Highlights of Day 1 and Day 2

The following table gives an insight into the performance of Anand Rathi IPO on the first and second bidding days:

Bidding Day NII RII QIB Employee Overall
Day 1 1.93 times 2.45 times 0.01 times 0.42 times 1.60 times
Day 2 3.06 times 4.77 times 0.17 times 0.66 times 3.02 times

Bottom Line

As it appears on the final bidding day, Anand Rathi Wealth has exceeded its target with its public issue overbooked 9.78 times. In case you missed out on this IPO, you can still invest in Anand Rathi Wealth shares once this company makes its D-Street debut. But remember, to buy the stock, you need to have a Demat account.

In case you don’t have one, you can choose to open one today and start your equity investment journey. That said, before you invest in this company, you must make sure to check various aspects concerning the company, including its business model, strengths, weaknesses, opportunities, and financials.

 

Frequently Asked Questions

  1. Who are some of the investors of Anand Rathi that participated in the offer-for-sale?

Pradeep Gupta, Anand Rathi, Priti Gupta, Amit Rathi, Feroze Azeez, Supriya Rathi are some of the existing shareholders that took part in the OFS.

  1. What is the overall AUM of Anand Rathi Wealth?

The total asset under management of Anand Rathi Wealth stood at Rs. 302.09 billion as of 31 August 2021. This indicates that since 31 March 2019, its AUM has surged at a CAGR of 22.74%.

  1. What is the listing date of Anand Rathi Wealth IPO?

Anand Rathi shares will get listed on both NSE and BSE on 14 December 2021.

  1. Who are some of the promoters of Anand Rathi Wealth?

The promoters of Anand Rathi Wealth are Anand Rathi Financial Services Limited, Mr. Anand Rathi and Mr. Pradeep Gupta.

 

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