Table of Contents
- Anand Rathi Wealth Limited IPO Introduction
- Anand Rathi IPO risk factors
- Why to invest in Anand Rathi IPO? (Competitive strengths)
- Anand Rathi IPO objective
- Who are the promoters of Anand Rathi Wealth Limited?
- Anand Rathi Wealth Limited financial track record
- Anand Rathi IPO open date & close date
- Anand Rathi IPO Finalization of Allotment, refund date & listing date
- Anand Rathi IPO allotment status check
- Anand Rathi IPO details
- Anand Rathi IPO GMP & estimated listing price
- Anand Rathi IPO valuation (over-priced or under-priced)?
- Is Anand Rathi IPO good or bad? (Review)
Anand Rathi Wealth Limited IPO Introduction
Anand Rathi Wealth Limited is a Mumbai-based mutual fund & nonconvertible debentures distributor. The company is coming with an OFS of 12,000,000 Eq Shares of ₹5 (aggregating up to ₹660.00 Cr).
Anand Rathi Wealth Limited is one of the leading non-bank wealth solutions firms in India and has been ranked amongst the top three non-bank mutual fund distributors in India by gross commission earned in Fiscal 2020. They serve a wide spectrum of clients through a mix of wealth solutions, financial product distribution, and technology solutions. They provide services primarily through their flagship Private Wealth (“PW”) vertical where they manage ₹ 260.58 billion in AUM as of March 31, 2021.
Anand Rathi IPO risk factors
1. One of the company’s promoter group entity namely Anand Rathi Commodities Limited (“ARCL”) and its director is involved in SEBI cases
2. The company will not be benefitted from IPO net proceeds as net proceeds will directly go to the shareholders
3. As per RBI guidelines the company is operating as an NBFC but still not registered as an NBFC this may attract penalties
4. There are outstanding legal proceedings against the company if materialize will adversely affect the company
5. The company has experienced negative cash flows in FY-21 and may do in the future too
6. One of the company’s subsidiaries has incurred losses in FY-19 & FY-20 and may incur losses in the future too
7. The company has contingent liabilities worth 34.64 cr ( approx) as of AUG 31, 2021, if materialize may have adverse effects on the company
Why to invest in Anand Rathi IPO? (Competitive strengths)
1. Company is One of the leading non-bank mutual fund distributors in India coupled with a presence in Non-Convertible Market Linked Debentures
2. The Company has posted stable revenues and profits over the past three years
3. The company is among the three leading mutual fund distributors in India
Anand Rathi IPO objective
1. The net proceeds comprises of offer for sale (OFS) of 12,000,000 Eq Shares of ₹5
(aggregating up to ₹660.00 Cr)
2. There is no fresh issue of Equity Shares
3. The OFS proceeds will directly go to the shareholders and not the company
Who are the promoters of Anand Rathi Wealth Limited?
Mr. Anand Rathi, Mr. Pradeep Gupta, and Anand Rathi Financial Services Limited are the promoters of the company.
Anand Rathi Wealth Limited financial track record
- Increasing revenue for FY-19 & FY-20, FY-21 affected due to Covid-19
- Increasing profits for FY-19 & FY-20, FY-21 afected dur to Covid-19
- Declining margins over the past three years
|Financial Year Ended||Revenue (₹ Crores)||PAT (₹ Crores)||EPS (₹)|
|The period ended August 31, 2021||168.90||51.088||12.25|
Anand Rathi IPO open date & close date
IPO open date: 2nd DEC, 2021 & IPO close date: 6th DEC, 2021
Anand Rathi IPO Finalization of Allotment, refund date & listing date
Finalization of Allotment – 9th December 2021, Initiation of Refunds- 10th December 2021, Date of Listing- 14th December 2021
Anand Rathi IPO allotment status check
Allotment status can be checked through their registrar website https://linkintime.co.in/
Anand Rathi IPO details
|PO date||02 Dec 2021 – 06 Dec 2021|
|Listing date||14 Dec 2021|
|Price range||530 – 550|
|Minimum order quantity||27|
Anand Rathi IPO GMP & estimated listing price
IPO GMP is Rs 29 & estimated listing price is 579, as of 8th DEC, 2021
Anand Rathi IPO valuation (over-priced or under-priced)?
Calculating with its upper price band of Rs 550
Now, the EPS (earning per share) for FY21 is 10.85 so the P.E ratio (price to earnings ratio) comes at 550/10.85=50.69x
And, the EPS for 5 months ending FY22 is Rs 12.25, so the P.E ratio comes at 550/12.25= 44.89x but when we annualize it comes at 18.70x for FY22
So, they are asking P.E between 18.70X to 50.69x, As per RHP, there is only one listed peer IIFL Wealth Management which is trading at P.E 35.7x. If we compare with this only listed peer, Anand Rathi IPO Price is fully priced.
Is Anand Rathi IPO good or bad? (Review)
Anand Rathi Wealth Limited is one of the leading mutual fund and nonconvertible debentures distributors in India,
Their revenue and profit are rising except FY-21 where they are affected by the pandemic, except that company has also shown good financials over the last 5 months ending Aug 21. However, the company’s margins are not constant. But looking at the mutual fund industry scope over the coming years one can definitely invest in it at this price and also add more quantities over price correction.
minimum 27 shares of RS 550 = Rs 14,850
As of 2nd Dec 2021
QIB0.01 times, NII, 1.75 times, Retail2.30 times, Employee0.41 times=Total1.50 times
login in to Zerodha Console submitting an IPO application form.
Follow below steps to apply this IPO in Zerodha platform:
1) Visit the Zerodha portal and log in to Console.
2) Go to Portfolio and click the IPOs link.
3) Visit the ‘Anand Rathi Wealth Limited IPO’ row and click the ‘Bid’ button.
4) Enter your UPI ID, Quantity, and Price.
5) Click on the ‘Submit’ IPO application form.
6) Visit the UPI App (net banking or BHIM) to approve the mandate.
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