Anand Rathi Wealth IPO: Brokerage and financial services firm Anand Rathi Wealth is also in the process of raising money through an IPO. The company has submitted its application to SEBI on July 20. The company will sell stake only in the offer for sale under the IPO.
Anand Rathi Wealth has selected Equiris Capital, IIFL Securities and BNP Paribas along with Anand Rathi Advisors as the Book Running Lead Manager for the IPO. According to the application submitted to SEBI, fresh issue will not be issued in this.
The promoters and other shareholders of the company will sell around 12 million shares of Anand Rathi Wealth. Out of this, 92.85 lakh shares are going to be sold by Anand Rathi Financial Services. Apart from this, 3.75-3.75 lakh shares will be sold by Rawal Family Trust of Anand Rathi, Pradeep Gupta, Amit Rathi, Preeti Gupta, Supriya Rathi, Firoz Aziz and Rakesh Rawal. Apart from this, another investor of the company, Jugal Mantri, will sell 90,000 shares in the IPO.
According to the application submitted to SEBI, Anand Rathi holds 12.85 per cent stake in the company. While Anand Rathi Financial Services holds 43.12 per cent stake in the company. In this IPO there is only offer for sale, so Anand Rathi Wealth will not get any money from the issue.
The AUM (Asset Under Management) of Anand Rathi Wealth in the fiscal year 2018-19 was Rs 18,393 crore. This had increased to Rs 26,670 crore in the fiscal year 2020. The company is making profit for the last three financial years.
Anand Rathi Wealth had an income of Rs 284 crore and a net profit of Rs 58.4 crore at the end of the fiscal year 2018-19. In the fiscal year 2019-2020, the company’s income increased to Rs 336 crore and net profit to Rs 61.6 crore.
However, in the financial year 2021, the business of the company has been affected by the coronavirus infection. The company’s income declined to Rs 215.6 crore and net profit at Rs 45.1 crore in this fiscal.
Anand Rathi Wealth will be the second wealth manager company to be listed after IIFL Wealth Management. The total income of IIFL is Rs 1659 crore while that of Anand Rathi Wealth is Rs 279 crore.
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