The initial public offering (IPO) of Anand Rathi Wealth Limited (ARWL) will open for subscription on December 2nd. The company plans to raise 660 crores through an initial public offering (IPO), which will include an OFS of 12,000,000 equity shares. In 2021, the company recorded revenue of 279 crores, compared to 336 crores in 2020. The price range for the IPO is set at 530 to 550 per equity share. The Anand Rathi IPO will be listed on both the NSE and the BSE.
About Anand Rathi Company
Anand Rathi Wealth is a renowned mutual fund distributor in India with a wealth management background. The firm is a subsidiary of the renowned Anand Rathi Group. Anand Rathi Wealth Limited offers a variety of wealth management services to a wide range of clients, including mutual funds, stock and commodity broking, insurance, and portfolio management. Anand Rathi IPO is primarily targeted at high-net-worth individuals (HNIs). Mumbai, Bengaluru, Delhi, Gurugram, and Hyderabad are among the 11 Indian cities where the company operates. They also provide estate planning, succession planning, and will be writing services. The company plans to use the public offering to raise to Rs 660 crore.
Highlights of Anand Rathi IPO
Anand Rathi Wealth Ltd.
Anand Rathi Wealth IPO GMP Today
Anand Rathi Wealth IPO Kostak Rate Today
Anand Rathi Wealth IPO Subject to Sauda Today
Anand Rathi Wealth IPO Expected Returns
Objectives of Anand Rathi IPO
The IPO’s net revenues will be used to get the advantages of stock exchange listing of equity securities
Some of the major companies’ strengths are as follows:
Anand Rathi is a well-known brand with a stronghold in wealth management and financial services.
According to CARE Advisory Research, the firm was among the top three non-bank mutual fund distributors in India in terms of the gross commission collected in Fiscal 2021.
It caters to a specific clientele of ultra-high net worth individuals, high net worth individuals, and mass affluent individuals.
Provides estate planning, succession planning, and will create for its clients at no additional cost.
It has a sizable clientele. The majority of users have been with the organization for more than three years, accounting for around 53% of the total. Nearly 72 percent of private wealth (vertical) AuM is contributed by these clients.
To their clients, the solutions supplied are simple, holistic, and standardized.
Risks of the Company
Some of the companies’ weaknesses are as follows:
The majority of Anand Rathi’s revenue comes from the distribution and retailing of financial products, and they rely on their capacity to grow AuM and fund performance to stay in business.
AMC distribution agreements could be terminated. Asset management firms account for about 34% of the company’s revenue (as of March 2021).
Any changes in the overall expense ratio as a result of regulatory changes may result in lower distribution commission income, which could harm the business and financial situation.
There is a great deal of reliance on the management team and relationship managers.
Anand Rathi operates in a very competitive environment that is prone to change and that, if unfavorable, could have a negative impact on the company’s operations.
Sensitive client information is kept on file by the company. Its reputation could be affected if data were to be leaked or stolen.
Anand Rathi Commodities Limited (ARCL), one of the promoter group’s firms, and its directors are being investigated by SEBI and the Mumbai Police’s Economic Offence Wing (EOW).
Anand Rathi’s Net Worth
ARWL was established in 1995. It is now one of India’s most popular non-bank wealth management options.
It is a mutual fund distributor that is registered with the Indian Association of Mutual Funds. Also it makes money by marketing mutual funds schemes run by several asset management firms and earning distribution commissions.
For the past three financial years, it has been among India’s top three non-bank mutual fund distributors.
The firm has established a monopoly in the distribution of financial products. It focuses on the high-net-worth individual (HNI) market, which is increasing.
Clients or active client families are defined as those with a cumulative AUM of at least Rs 50 lakh.
Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur, and Noida are the company’s headquarters, and they also have a representative office in Dubai.
Verticals in which the Company Operates
The following are the three verticals in which the company operates:
Private Wealth Vertical: They distribute mutual fund schemes run by top AMCs in India under the Private Wealth Vertical. Users can also purchase non-convertible market-linked debentures (MLDs). MLDs are a crucial component of their model strategies. When compared to equity investments throughout the medium to long term, it provides more reliable and steady returns with minimal risk. As part of their fundamental aims in managing money for their clients, this vertical also includes estate planning, succession planning, and the creation of wills.
Digital Wealth Vertical: The company’s Digital Wealth Vertical is a fin-tech expansion of the company’s offering. The concept is to target the market’s enormous mass affluent group with a wealth solution given through a ‘phygital channel,’ which consists of a combination of human distributors and technology. In its endeavor to develop a Partner-led distribution model through which a bundled investment service is supplied, the sector was established in 2016, and it had good results. IFAs and AMFI-registered Mutual Fund Distributors are partners here. Through an innovative, easy-to-use technological interface, partners may build their business by bringing the Anand Rathi brand, product research, selection, and investing insights to their clients.
Omni Financial Advisors (OFA) Vertical: OFA provides a digital platform for Independent Financial Advisors (IFAs) to support their clients and develop their businesses. It was founded in 2016 and has since grown to become India’s biggest technology platform for independent financial advisors. It has over 1.63 million Platform Clients as of August 31, 2021.
Anand Rathi IPO Timetable
Price Band Announcement
29 – November – 2021
Anchor Investors Allotment
1 – Dec – 2021
IPO Open Date
2 – Dec – 2021
IPO Close Date
6 – Dec – 2021
Basis of Allotment Date
9 – Dec – 2021
Initiation of Refunds
10 – Dec – 2021
The credit of Shares to Demat Account
13 – Dec – 2021
IPO Listing Date
14 – Dec – 2021
Anand Rathi IPO Details & Price Band
IPO Opening Date
Dec 2, 2021
IPO Closing Date
Dec 6, 2021
₹530 to ₹550 per equity share
Approx ₹660 Crores
Book Built Issue IPO
₹5 per equity share
Min Order Quantity
[.] Eq Shares of ₹5(aggregating up to ₹660.00 Cr)
₹530 to ₹550 Per Equity Share
Offer for Sale
12,000,000 Eq Shares of ₹5(aggregating up to ₹660.00 Cr)