The initial public offer (IPO) of Anand Rathi Wealth Ltd, which is part of Mumbai-based financial services group Anand Rathi, will close on Monday viz December 6.
The IPO, which was opened on December 2, has been subscribed 3.83 times on Monday.
The reserved portion for qualified institutional buyers was subscribed 17 percent, and that of non-institutional investors saw 4.41 times subscription, according to a report in Moneycontrol.
Retail investors continued to provide strong support to the issue with their allotted quota being subscribed 5.87 times, and employees have put in bids for 72 percent of the portion set aside for them.
The price band for the Rs 660-crore initial share-sale, which opened on December 2, has been fixed at Rs 530-550 per equity share.
Check below the view of analysts/brokerage houses that could help investors:
Marwadi Shares and Finance Limited
The brokerage house has given a subscribe rating for this IPO. It said the company is one of the leading non-bank mutual fund distributors in India with a presence in Non-Convertible Market Linked Debentures and is available at reasonable valuations as compared to its peer, according to Zee Business report.
Considering the FY-22 annualized EPS of Rs.29.46 on the post-issue basis, the company is going to list at a P/E of 18.67x with a market cap of Rs.22,889 mn, while its peer namely IIFL Wealth Management is trading at P/E of 24.59x (FY22 annualized). It assigns a “Subscribe” rating to this IPO."
Emkay Global
The non-annualized EPS for the five months ending August 2021 stands at Rs 12.25 versus FY21 EPS of Rs 10.85. We recommend a subscribe rating on the IPO.
The company is mainly into wealth management, via its private wealth (PW vertical, with total assets under management of Rs 29,472 crore as on August 31. The AUM comprises mutual fund schemes and other financial products such as bonds, MLDs and other securities held by clients in their own Demat accounts.
Manoj Dalmia, founder at Proficient equities Private Ltd
Dalmia said one should apply for this issue only if it is oversubscribed on the final day, with the majority being NII and anchor investors.
