Anand Rathi’s initial public offering (IPO) was oversubscribed by 2.78 times

On the second day of bidding, Anand Rathi Wealth, one of India’s largest non-bank wealth solutions providers, received offers for 2.35 crore equity shares against an IPO size of 84.75 lakh units, with the IPO being subscribed to 2.78 times.

Retail investors received 4.44 times the amount set aside for them, while non-institutional investors received 2.71 times the amount put out for them. Qualified institutional purchasers bought 17 percent of the shares earmarked for them, while employees bid for 50% of their assigned quota.

Anand Rathi Wealth, which has been listed among India’s top three non-bank mutual fund distributors by gross commission collected over the last three fiscal years, wants to raise Rs 660 crore through a public offering that will consist solely of 1.2 crore equity shares. On December 1, the company raised Rs 194 crore from anchor investors. The offer’s price range is Rs 530-550 per equity share.

Hem Securities stated, “The company is bringing the issue at a price-to-earnings (P/E) multiple of 19 on annualised five-month ended August 2021 EPS.”

With easy, holistic, and standardised solutions supplied to clients based on an objective-driven approach, the company focuses on the underserved and less price-sensitive HNI market. Hem Securities recommended’subscribe’ for the issuance because the company is one of India’s largest non-bank mutual fund distributors and has a foothold in non-convertible market-linked debentures.