Anand Rathi Wealth IPO subscribed nearly 10x on strong HNI interest

The initial public offering (IPO) of Anand Rathi Wealth saw nearly 10 times more demand than the shares on offer. The high networth individual (HNI) category saw the maximum oversubscription at 25.4 times followed by retail at 7.8 times. Meanwhile, the institutional portion saw only 2.5 times subscription. Overall, the IPO saw bids worth Rs 4,500 crore.

The price band for the IPO was Rs 530-550 per share.

Anand Rathi’s IPO was entirely an offer for sale of 12 million shares. At the upper end of the price band, the issue size worked out to Rs 660 crore. Among the selling shareholders are promoter entities Anand Rathi Financial Services, Anand Rathi and Amit Rathi. At the top-end, the company is valued at about Rs 2,290 crore.

The company is a private wealth solutions provider. It is also the country’s leading mutual fund distributor (MFD). It has been ranked as the three largest non-bank MFD by gross commission earned in FY21.

The company provides services through its flagship private wealth vertical. It has assets under management (AuM) worth Rs 29,470 crore as of August 31, 2021.