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Anand Rathi Wealth IPO

Part of the Mumbai-based Anand Rathi Group, Anand Rathi Wealth Services Limited is one of India’s prominent non-banking financial service providers. It specialises in mutual fund distribution services. Currently, it operates in the Middle East and across 11 cities in India.

Anand Rathi Wealth IPO Objectives

- Boost brand name
- Help the company’s existing shareholders achieve adequate liquidity

Anand Rathi Wealth IPO - Details

The potential Anand Rathi Wealth IPO will be completely an offer-for-sale issue, comprising 1.2 crore equity shares. The DRHP filed with markets regulator SEBI on Tuesday revealed the names of promoters and shareholders offering shares in the same.

These included up to 90,000 shares by Jugal Mantri, 3.75 lakh shares by each of Anand Rathi, Supriya Rathi, Amit Rathi, Pradeep Gupta, Feroze Azeez, Priti Gupta, and Rawal Family Trust, and 92.9 lakh shares by Anand Rathi Financial Services Ltd (ARFSL).

Opening Date

2 December 2021

Closing Date

6 December 2021

Price Band

₹530 - ₹550

per equity share

Issue Size

₹660 crores

Face Value

₹5

per equity share

Market Lot

27 Shares

Opening Date

2 December 2021

Closing Date

6 December 2021

Price Band

₹ 530 - ₹ 550 per share

per equity share

Issue Size

₹ 660 crores

Face Value

₹ 5

per equity share

Market Lot

27 shares

Listing at NSE, BSE

Anand Rathi Wealth IPO Important Dates

IPO Open Date 2 December 2021
IPO Close Date 6 December 2021
Basis Of Allotment Date 9 December 2021
Initiation Of Refunds 10 December 2021
Credit Of Shares To
Demat ACcount
13 December 2021
IPO Listing Date 14 December 2021
UPI Mandate Expiry Date Yet to be announced

We will update the dates soon after Anand Rathi Wealth announces the IPO timeline.

The company will not receive proceeds from this public offering since this will be entirely an offer for sale issue.
Note: We will update the details as soon as the company releases them.

Anand Rathi Wealth IPO Latest News and Subscription Status Today [Live]

Day 3 : 6th December 2021
Day 2 : 3rd December 2021
Day 1 : 2nd December 2021

At 10.40:00 AM.

- This IPO has been subscribed 3.70x by 10:40 AM. on Day 3

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.17x

- (NII) Non-institutional buyers: 4.30x

- (RII) Retail Individual buyers: 5.65x

- Employees: 0.69x

 

At 11.40:00 AM.

- This IPO has been subscribed 3.92x by 11:40 AM. on Day 3

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.17x

- (NII) Non-institutional buyers: 4.48x

- (RII) Retail Individual buyers: 6.02x

- Employees: 0.73x

 

At 12.40:00 PM.

- This IPO has been subscribed 4.61x by 12:40 PM. on Day 3

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.18x

- (NII) Non-institutional buyers: 7.10x

- (RII) Retail Individual buyers: 6.29x

- Employees: 1.02x

 

At 1.40:00 PM.

- This IPO has been subscribed 5.06x by 1:40 PM. on Day 3

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.37x

- (NII) Non-institutional buyers: 7.97x

- (RII) Retail Individual buyers: 6.74x

- Employees: 1.05x

 

At 2.40:00 PM.

- This IPO has been subscribed 6.36x by 2:40 PM. on Day 3

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.96x

- (NII) Non-institutional buyers: 12.14x

- (RII) Retail Individual buyers: 7.30x

- Employees: 1.10x

At 10.40:00 AM.

- This IPO has been subscribed 1.85x by 10:40 AM. on Day 2

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.01x

- (NII) Non-institutional buyers: 2.04x

- (RII) Retail Individual buyers: 2.91x

- Employees: 0.44x

 

At 11.40:00 AM.

- This IPO has been subscribed 1.85x by 11:40 AM. on Day 2

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.01x

- (NII) Non-institutional buyers: 2.26x

- (RII) Retail Individual buyers: 3.28x

- Employees: 0.45x

 

At 12.40:00 PM.

- This IPO has been subscribed 1.85x by 12:40 PM. on Day 2

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.01x

- (NII) Non-institutional buyers: 2.33x

- (RII) Retail Individual buyers: 3.55x

- Employees: 0.45x

 

At 1.40:00 PM.

- This IPO has been subscribed 2.32x by 1:40 PM. on Day 2

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.01x

- (NII) Non-institutional buyers: 2.44x

- (RII) Retail Individual buyers: 3.70x

- Employees: 0.47x

 

At 2.40:00 PM.

- This IPO has been subscribed 2.41x by 2:40 PM. on Day 2

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.01x

- (NII) Non-institutional buyers: 2.49x

- (RII) Retail Individual buyers: 3.86x

- Employees: 0.47x

 

At 3.40:00 PM.

- This IPO has been subscribed 2.75x by 3:40 PM. on Day 2

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.17x

- (NII) Non-institutional buyers: 2.69x

- (RII) Retail Individual buyers: 4.38x

- Employees: 0.49x

 

At 5:10:00 PM.

- This IPO has been subscribed 3.02x by 5:10 PM. on Day 2

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.17x

- (NII) Non-institutional buyers: 3.06x

- (RII) Retail Individual buyers: 4.77x

- Employees: 0.66x

At 10.40:00 AM.

- This IPO has been subscribed 0.50x by 10:40 AM. on Day 1

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x

- (NII) Non-institutional buyers: 0.35x

- (RII) Retail Individual buyers: 0.89x

- Employees: 0.03x

 

At 11.40:00 AM.

- This IPO has been subscribed 0.62x by 11:40 AM. on Day 1

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x

- (NII) Non-institutional buyers: 0.44x

- (RII) Retail Individual buyers: 1.08x

- Employees: 0.04x

 

At 12.40:00 PM.

- This IPO has been subscribed 0.76x by 12:40 PM. on Day 1

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x

- (NII) Non-institutional buyers: 0.58x

- (RII) Retail Individual buyers: 1.31x

- Employees: 0.05x

 

At 1.40:00 PM.

- This IPO has been subscribed 0.86x by 1:40 PM. on Day 1

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x

- (NII) Non-institutional buyers: 0.67x

- (RII) Retail Individual buyers: 1.49x

- Employees: 0.06x

 

At 3.10:00 PM.

- This IPO has been subscribed 1.14x by 3:10 PM. on Day 1

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x

- (NII) Non-institutional buyers: 1.15x

- (RII) Retail Individual buyers: 1.84x

- Employees: 0.07x

 

At 4.10:00 PM.

- This IPO has been subscribed 1.29x by 4:10 PM. on Day 1

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.01x

- (NII) Non-institutional buyers: 1.45x

- (RII) Retail Individual buyers: 2.03x

- Employees: 0.08x

 

At 5.10:00 PM.

- This IPO has been subscribed 1.60x by 5:10 PM. on Day 1

- It is a public issue of 84,75,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.01x

- (NII) Non-institutional buyers: 1.93x

- (RII) Retail Individual buyers: 2.45x

- Employees: 0.42x

Why Should You Invest in Anand Rathi Wealth IPO?

Given the shower of new IPOs this monsoon, Anand Rathi Wealth might be a great investment option for individuals willing to dig into the benefits of mutual fund distributors. It belongs to the list of top-tier mutual fund distributors according to the gross commissions it earned in the previous financial year.

Anand Rathi Wealth offers wealth management solutions mainly via its private flagship division Private Wealth Vertical. The private wealth AUM clocked 20.17% CAGR from March 2019 to March 2021. Such growth is testimony to the profits that individuals can reap from investing in this company’s shares.

However, willing investors must consider their investment goals and probable market risks before subscribing to this IPO.

Financial highlights

Financial Year Total Revenue  Total Assets  Profit After Tax
March 2021 Rs. 265.33 crores Rs. 26,058 crores Rs. 45.11 crores
March 2020 Rs. 331.83 crores - Rs. 61.61 crores
March 2019 Rs 276.58 crores Rs. 18,393 crores Rs. 58.43 crores

How to apply for Anand Rathi Wealth IPO?

You can apply for the Anand Rathi Wealth IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Anand Rathi Wealth IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Anand Rathi Wealth IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Anand Rathi Wealth IPO – Noteworthy Highlights

Here are some notable highlights of the company :

- Anand Rathi Wealth ranks among India’s top 3 non-banking mutual fund distributors.

- It offers a number of investment solutions, including but not limited to debentures, mutual funds, equity derivatives, and structured products.

- Its unit, Private Wealth, recorded 6,109 active clients as of March 2021.

- 52.33% of these clients have been associated with Anand Rathi Wealth for over 3 years.

- In India, Anand Rathi is operational in Kolkata, Mumbai, Delhi, Pune, Bengaluru, and Chennai with a Dubai-based representative office.

Anand Rathi Wealth IPO - SWOT Analysis

strengths

Strengths

  • Quality and value-added financial solutions: Anand Rathi Wealth targets high net worth individuals (HNIs) and ultra-high net worth individuals (UHNIs) as its primary customers. For this purpose, it ensures standardised solutions as part of its holistic and objective-driven approach. It also offers value-added services, comprising complementary will creation, succession planning, and estate planning free of cost.
  • Employee retention: It maintains an entrepreneurial work culture as a means to value and retain talent. As a result, it has seen the rate of employee retention reduce to 0.2% in the past 6 months from 1.5% in the last 1 year.
  • Unique marketing approach: Anand Rathi Wealth aims to enhance its brand name via promotional approaches, appointing more relationship managers, and opting for geographic expansion.
Weaknesses

Weaknesses

  • Poor performance amidst market slump: Anand Rathi Wealth took a hit amidst the long periods of market volatility and slag in business activities due to the pandemic. This is observable from its sharp decline in revenue by 20% in FY21. Its net profit also reduced by 26% in this period. This was during a period that saw considerable advancements in the broking sector.
  • Difficulty tackling losses: As a result of decreased revenue, the company reduced “Employee Benefit Expenses” among several other financial liabilities to compensate for business losses.
Opportunities

Opportunities

  • Growth in brokerage market: The brokerage market grew at an approximate rate of 7.69% to reach a valuation of Rs. 21,000 crores in FY20 from Rs. 19,500 crores in FY19. The industry is gradually evolving into a free-based model from a traction-based one. Brokers can achieve significant income from increasingly sought-after fund-based services like margin funding and loan against shares. These are the primary offerings of Anand Rathi Wealth, besides trading and advisory services. The rising popularity of these services can help this company strengthen client relationships.
  • Technological advancements: Online services have been a major driver of an improving economy post demonetisation. Mobile-based trading and efficient data connectivity have also aided in reviving the brokerage market post stock market meltdown. It has also led to a growth in online Demat account openings via user-friendly mobile applications.
Threats

Threats

  • Lack of financial awareness: A majority of individuals in India do not have a clear understanding of stocks, shares, and mutual funds, as of yet. Understandably, they lack the knowledge to invest in these high-return tools and other basic financial concepts like asset allocation, risk-reward ratio, diversification, etc. As a result, they tend to limit their resources to traditional investments modes.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Quality and value-added financial solutions: Anand Rathi Wealth targets high net worth individuals (HNIs) and ultra-high net worth individuals (UHNIs) as its primary customers. For this purpose, it ensures standardised solutions as part of its holistic and objective-driven approach. It also offers value-added services, comprising complementary will creation, succession planning, and estate planning free of cost.
  • Employee retention: It maintains an entrepreneurial work culture as a means to value and retain talent. As a result, it has seen the rate of employee retention reduce to 0.2% in the past 6 months from 1.5% in the last 1 year.
  • Unique marketing approach: Anand Rathi Wealth aims to enhance its brand name via promotional approaches, appointing more relationship managers, and opting for geographic expansion.

Weaknesses 

  • Poor performance amidst market slump: Anand Rathi Wealth took a hit amidst the long periods of market volatility and slag in business activities due to the pandemic. This is observable from its sharp decline in revenue by 20% in FY21. Its net profit also reduced by 26% in this period. This was during a period that saw considerable advancements in the broking sector.
  • Difficulty tackling losses: As a result of decreased revenue, the company reduced “Employee Benefit Expenses” among several other financial liabilities to compensate for business losses.

Opportunities 

  • Growth in brokerage market: The brokerage market grew at an approximate rate of 7.69% to reach a valuation of Rs. 21,000 crores in FY20 from Rs. 19,500 crores in FY19. The industry is gradually evolving into a free-based model from a traction-based one. Brokers can achieve significant income from increasingly sought-after fund-based services like margin funding and loan against shares. These are the primary offerings of Anand Rathi Wealth, besides trading and advisory services. The rising popularity of these services can help this company strengthen client relationships.
  • Technological advancements: Online services have been a major driver of an improving economy post demonetisation. Mobile-based trading and efficient data connectivity have also aided in reviving the brokerage market post stock market meltdown. It has also led to a growth in online Demat account openings via user-friendly mobile applications.

Threats 

  • Lack of financial awareness: A majority of individuals in India do not have a clear understanding of stocks, shares, and mutual funds, as of yet. Understandably, they lack the knowledge to invest in these high-return tools and other basic financial concepts like asset allocation, risk-reward ratio, diversification, etc. As a result, they tend to limit their resources to traditional investments modes.

Competitor Analysis: Market Peers

Anand Rathi Wealth is among India’s most prominent financial service providers. However, its late entry into the IPO market leaves space for its competitors to hold some prominence, particularly IIFL Wealth Management. Here is a table enlisting some of its most notable market peers and their market capitalisation growth over the past year.

Market Peers  Market Capitalisation Growth (in %)
Intellivate Capital Advisors Ltd. 16.27%
IIFL Wealth Management 24.91%
Yarii Digital Integrated Services Ltd. 137.54%
Sagarsoft (India) Ltd. 505.98%

Anand Rathi Wealth IPO FAQs

What is the Anand Rathi Wealth IPO?

Anand Rathi Wealth filed a DRHP with SEBI for an IPO comprising an offer for sale of 1.2 crore shares. These offers will be by existing company shareholders and promoters. Therefore, the company will receive none of the proceeds from this IPO.

What is the opening date of Anand Rathi Wealth IPO?

Anand Rathi Wealth IPO timeline has not been disclosed yet.

What will be the minimum lot size for retail investors?

Anand Rathi Wealth IPO has not made any announcement on the minimum lot size for retail investors.

When is Anand Rathi Wealth going to list its IPO?

There is no listing date of Anand Rathi Wealth IPO shares as of now. We will update this information after the company publishes it.

What is the process to receive Anand Rathi Wealth shares?

Individuals will receive Anand Rathi Wealth IPO shares directly into their Demat accounts after the completion of allotment.

Will there be any reservation for company employees for Anand Rathi Wealth IPO?

The company has not provided any clarification on this matter yet.

Who are the investment bankers for the Anand Rathi Wealth IPO?

BNP Paribas, IIFL Securities, and Equirus Capital are the investment bankers to this IPO.

Which categories of investors can participate in this IPO?

There is no clarification available on this matter till now.

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