Listing gains: Anand Rathi Wealth shares debut on exchanges at 9.46% premium after bumper IPO

Anand Rathi Wealth shares began trading on stock exchanges today with listing gains of 9.46% over the IPO price. The stock listed at Rs 602.05 on BSE/NSE against the IPO allotment price of Rs 550 per share.

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Listing gains: Anand Rathi Wealth shares debut on exchanges at 9.46% premium after bumper IPO (File Photo REUTERS)

Anand Rathi Wealth shares began trading on stock exchanges today with listing gains of 9.46% over the IPO price. The stock listed at Rs 602.05 on BSE/NSE against the IPO allotment price of Rs 550 per share. A few minutes after listing, the shares dropped Rs 575. Anand Rathi is the 56th company to list on the exchanges this year. The company’s Rs 660-crore public issue during December 2-6 was well received by all categories of investors. The company raised around Rs 194 crore from the key investors during its three-day initial public offering.

The IPO received bids for 8.29 crore shares as against the offered shares of 84 lakh. The portion for qualified institutional buyers (QIB) was subscribed 2.5 times. Non-institutional investors (NII) saw 25.42 times subscription during the IPO. The quota meant for retail investors was subscribed 7.76 times, and employees put in bids 1.32 times the portion set aside for them.

“Anand Rathi is debuting the secondary market with moderate listing gain which is on the expected line. Long-term investors should hold this stock on the back of a strong industry outlook while those who applied for listing gain can keep a stop loss of 550. New investors can look for buying opportunities at any dip with a long term view,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Parth Nyati, Founder, Tradingo said, “The company saw a decent response of 9.78 times from the investors and the stock was listed at Rs 600 as compared to the issue price of Rs 550 apiece with a 10% gain that was in line with our estimate. We believe the wealth creation industry has tremendous potential and may perform much better in the coming years. Short-term investors who got the allotment can place a stop loss of 550 while long-term investors can hold the stock. New investors can look for long-term investment opportunities after the market stabilizes.”

Anand Rathi Wealth 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. Anand Rathi Wealth clocked a profit of Rs 45.09 crore in FY21, lower than Rs 61.61 crore in the previous year. Revenue declined to Rs 265.33 crore from Rs 331.83 crore. Profit for five-months ended August stood at Rs 51.08 crore on revenue of Rs 166.92 crore.

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