The initial public offering (IPO) of Anand Rathi Wealth was subscribed 1.60 times or 160% on the first day of the share sale on December 2. The issue received bids for 1.36 crore equity shares against the IPO size of 84.75 lakh equity shares on the first day. The portion allocated for retail investors was subscribed 2.45 times.
The employees’ portion received 42 per cent of total bids. Non-institutional investors placed bids for 193 per cent of the shares reserved for them. Qualified institutional investors applied for 17,658 shares out of the 23,50,000 shares allocated for them.
The grey market premium (GMP) of the shares being offered in the IPO stands at Rs 130 today. According to the current GMP, the shares will list at Rs 680 on the bourses on December 14.
The shares are being sold in a price band of Rs 530-550 per share. The subsidiary of Mumbai-based financial services group Anand Rathi plans to raise Rs 660 crore at the upper end of the price band.
The issue opened on December 2 and will close on December 6. The share sale is entirely an offer for sale (OFS) of 1.2 crore equity shares by promoters and existing shareholders.
The OFS consists of sale of 92.85 lakh equity shares by Anand Rathi Financial Services, and 3.75 lakh equity shares each by Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, and Feroze Azeez, and 90,000 equity shares by Jugal Mantri. 2.5 lakh equity shares have been reserved for employees.
The IPO’s lot size is 27 shares for which one will have to spend Rs 14,850. A retail-individual investor can apply for up to 13 lots or 351 shares by spending Rs 1,93,050.
The allotment of shares will be finalised on December 9, 2021 and the firm will make its debut on BSE and NSE on December 14. The object of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.
On December 1, Anand Rathi raised Rs 194 crore from anchor investors, ahead of its initial share sale. The company has decided to allocate 35.25 lakh equity shares to 12 anchor investors at Rs 550 apiece, valuing the transaction size at Rs 194 crore.
BNP Paribas Arbitrage, Goldman Sachs Funds, Ashoka India Equity Investment Trust Plc, Kuber India Fund, SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Axis MF, Tata MF and Aditya Birla Sun Life MF are among the anchor investors.
Anand Rathi Wealth is one of the leading non-bank wealth solutions firms in India. The company offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients.