Anand Rathi Wealth lists at 9% premium over issue price

The stock closed at Rs 583.50, up 6.09% with a market capitalisation of Rs 2,428.31 crore.

Ahead of the listing, shares of the company commanded a premium of Rs 40-45 in the grey market. Analysts expected a muted or moderate debut amid the grey market premium declining ahead of the listing.
Ahead of the listing, shares of the company commanded a premium of Rs 40-45 in the grey market. Analysts expected a muted or moderate debut amid the grey market premium declining ahead of the listing. (Representative image)

Shares of Anand Rathi Wealth had a modest debut on listing day and rose 9% over the offer price. The stock opened at Rs 602.05 on the BSE on Tuesday, a 9.46% premium against the issue price of Rs 550 apiece. On the NSE, the stock debuted at Rs 600, a 9.09% premium against the offer price. The stock closed at Rs 583.50, up 6.09% with a market capitalisation of Rs 2,428.31 crore.

Ahead of the listing, shares of the company commanded a premium of Rs 40-45 in the grey market. Analysts expected a muted or moderate debut amid the grey market premium declining ahead of the listing.

The Rs 660-crore initial public offering (IPO) of the wealth management company was subscribed more than nine times between December 3 and December 6, receiving bids for 8.3 crore shares against 84.8 lakh on offer. The public issue was entirely an offer for sale by existing shareholders and promoters, and the company has not received any proceeds from the IPO. According to a note by ICICI Direct, the issue was valued at a price/ book value and a price/ earnings multiple of 9.4x and 51x to its FY21 NAV of Rs 58.5 and EPS of Rs 10.9, respectively.

Anand Rathi Wealth’s assets under management stood at Rs 30,209 crore in the five months ended August 31. It generated revenue of Rs 279.2 crore and a net profit of Rs 45.1 crore in FY21, with a profit margin of 16.2%. The company is one of the leading non-bank wealth solutions firms in the country and has been ranked amongst the top three non-bank mutual fund distributors by gross commission earned in FY19, FY20, and FY21.

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