Mumbai-based Anand Rathi Wealth has filed preliminary papers with market watchdog Sebi to raise capital via initial share shale. Anand Rathi Wealth is a part of the financial services group Anand Rathi.
The initial public offering (IPO) will entirely be an offer for sale (OFS) by the promoters of the company and existing shareholders, who will offload 1.2 crore equity shares, the DRHP filed by the company showed.
Existing investors and promoters who will sell their stake in the company include Anand Rathi Financial Services, Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, Jugal Mantri, and Feroze Azee.
Anand Rathi Wealth is a big player in the financial services industry, which is widely indulged in the business of mutual fund distribution and selling various financial products.
The company is eyeing for listing on bourses with a rationale that listing of equity shares will enhance its brand name and provide liquidity to existing shareholders.
Equirus Capital, BNP Paribas, IIFL Securities, and Anand Rathi Advisors have been appointed as merchant bankers to the company. The equity shares will be listed on both BSE and NSE.
Prior to this, the company had filed draft papers with Sebi to raise Rs 425 crore through an IPO in September 2018. However, the firm later withdrew its proposed issue.
Anand Rathi Wealth provides advisory, distribution, and technology solutions to various clients, among which the majority are HNIs and Ultra HNIs.
In the Financial Year 2020-21, the company’s consolidated revenue degrew 14% to Rs 279.25 from Rs 336.43 crore in the financial year 2019-20. The net profit of the company slipped 27 percent to Rs 44.54 crore from Rs 61.39 crore during the period under review.
According to the current estimates, the market cap of Anand Rathi Wealth management is around Rs 1,800 crore. At the current EPS of Rs 16 per share, the company is trading at a Trailing P/E of 40 times, which is quite high compared to its listed peers.
The only listed peer of the company is IIFL Wealth Management, which is trading at a P/E multiple of 19.02 times. The company has a market cap of more than Rs 12,100 crore.
In its recent annual general meeting (AGM), the company issued a bonus in 2:1 ratio, implying a bonus share for every two shares held. The record date for the same was 15 July 2021. The bonus issue was a big hint on the company’s IPO plans.