Anand Rathi Wealth IPO: Opens today; find key details that investors must know before investing

Anand Rathi Wealth Limited, the wealth management arm of Anand Rathi Financial Services, will launch its initial public offering (IPO) today, i.e., Thursday, December 2, 2021. The three-day initial share sale will conclude on Monday, December 6, 2021.

The price band of the issue has been fixed at Rs 530-550 per share. Retail investors can place a bid for a lot of 27 equity shares and in multiples thereof up to Rs 2 lakh. Retail investors can invest a minimum of Rs 14,850 for one lot and a maximum of Rs 1,93,050 for 13 lots. At the upper end of the price band, the initial share sale is expected to fetch Rs 660 crore.

Half of the offer size is reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 35 per cent of the offer for retail investors.

The initial share sale is entirely an offer for sale (OFS) of 1.2 crore equity shares (including Anchor portion of 35,25,000 equity shares) by promoters and existing shareholders. The OFS consists of the sale of 92.85 lakh equity shares by Anand Rathi Financial Services, and 3.75 lakh equity shares each by Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, and Feroze Azeez, and 90,000 equity shares by Jugal Mantri. The issue includes a reservation of 2.5 lakh equity shares for employees.

Equirus Capital Private Limited, BNP Paribas, IIFL Securities Limited, Anand Rathi Advisors Limited is the Book Running Lead Managers while Link Intime India Private Limited is the registrar for the issue.

The company will not receive any proceeds from the offer and through the offer.

Anand Rathi Wealth Limited is one of the leading non-bank wealth solutions firms in India and has been ranked amongst one of the three largest non-bank mutual fund distributors in India by gross commission earned in Fiscal 2019, 2020 and 2021 (Source – CARE Advisory Research). It serves a wide spectrum of clients through a mix of wealth solutions, financial product distribution and technology solutions. It provides services primarily through our flagship Private Wealth ("PW") vertical where we manage Rs 294.72 billion in AuM as of August 31, 2021. The Company:

(a) Acts as a mutual fund distributor, registered with the Association of Mutual Funds in India. It distributes mutual fund schemes managed by asset management companies and earns distribution commissions on a trial basis from asset management companies.

(b) Purchases non-convertible market linked debentures ("MLDs") and offers them to its clients and earns income from these sales. Therefore, the AUM of our Company comprises mutual fund schemes and other financial products such as bonds, MLDs and other securities held by clients in their Demat accounts. Further, our Company does not include Demat holdings of the clients in the AUM unless the client has also used the distribution service of ARWL or have bought MLDs through ARWL.

As per the industry practice, all such assets kept in the Demat account of the clients belong to the respective clients and indicate the value of their assets. Such assets are shown as the AUM of our Company. All decisions regarding the purchase and sale of mutual funds and other securities are taken by the clients. Our Company is not engaged in any portfolio management of its clients. Its clients or active client families include client families/groups with at least Rs 5 million in cumulative AuM. Each 'client family' or 'Client' may have one or more sub-accounts or family member accounts through which they invest.

The company has its offices in 11 cities namely Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida. It also has a representative office in Dubai.