Anand Rathi Wealth filed draft initial public provide (IPO) papers with capital markets regulator SEBI (Securities and Exchange Board of India) on Tuesday, July 20. The wealth management arm of domestic brokerage and monetary services firm Anand Rathi Financial Services is arranging to enter the major markets for an provide for sale (OFS) by promoters and other shareholders. Equirius Capital, BNP Paribas, IIFL Securities, and Ananda Rathi Advisors are the book-operating lead managers to the concern. The IPO will not incorporate a fresh concern of equity shares, according to the draft provide papers.
Promoters of the business and other shareholders will sell 1.2 crore shares of Anand Rathi Wealth via the public concern. Of this, 92.85 lakh shares will be sold by Anand Rathi Financial Services, up to 3.75 lakh equity shares every will be sold by Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Feroze Azeez, and Rawal Family Trust, acting via Rakesh Rawal. Another investor Jugal Mantri will sell 90,000 equity shares via the IPO. According to the draft red herring prospectus (DRHP) filed by Anand Rathi Wealth, Anand Rathi himself holds a 12.85% stake in the business although Anand Rathi Financial Services has a 43.12% stake, pre-IPO. The IPO will only be an provide for sale (OFS) and therefore Anand Rathi Wealth will not obtain any proceeds from the concern.
At the finish of the monetary year 2018-19, Ananda Rathi Wealth had an Asset Under Management (AUM) of Rs 18,393 crore. At the finish of the preceding monetary year, this enhanced to Rs 26,670 billion. The business has been producing earnings for the last 3 monetary years. At the finish of the monetary year 2018-19, Anand Rathi had income of Rs 284 crore and a net profit of Rs 58.4 crore. The very same enhanced to Rs 336 crore and Rs 61.6 crore in the monetary year 2019-20. Hit by covid in the monetary year 2020-21, the business saw income slip to Rs 215.6 crore and net profit dropped to Rs 45.1 crore. “Decline in our revenue from operations and profits was primarily due to the adverse effect of the COVID-19 pandemic, extended period of business disruptions, stock market volatility and decrease in investor’s sentiments for new investment in the initial phase of the COVID-19 pandemic,” the business stated in the DRHP.
Anand Rathi Wealth could join IIFL Wealth Management as the only other wealth manager listed on the stock exchanges on Dalal Street. IIFL Securities has a total earnings of Rs 1,659 crore as compared to Rs 279 crore of Anand Rathi Wealth. The Return On Net Worth for IIFL Wealth stands at 13.06% although for Anand Rathi the very same is at 18.69%, according to the DRHP.