ANAND RATHI Wealth Services Ltd

ANAND RATHI Wealth Services

About the Company:

Anand Rathi Wealth Ltd is one of the leading non-bank wealth solutions firms in India.

Company 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.

Company serves a wide spectrum of clients through a mix of wealth solutions, financial product distribution and technology solutions.

Company provides services primarily through flagship Private Wealth (“PW”) vertical where company manages Rs.294.72 billion in AuM as on August 31, 2021.

Company is currently present across 11 cities in India, namely, Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida and we have a representative office in Dubai.

 

 

Company’s Background:

ANAND RATHI Wealth Services Ltd is part of the Anand Rathi Group, founded by Mr. Anand Rathi and Mr. Pradeep Gupta in the year 1994 with a focus on stock-broking services and subsequently, has expanded into a diversified financial services conglomerate in the country with presence in segments, including non-banking financial services, wealth management, stock broking, investment banking and insurance broking.

The Anand Rathi Group has expanded its geographical footprint and operates through 98 offices across India and the Middle East, which they service through business associates and representative offices/associate companies.

 

 

Company’s Business:

(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 trail 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 Company comprises mutual fund schemes and other financial products such as bonds, MLDs and other securities held by clients in their own demat accounts.

 

Client additions during the last three Fiscals as showcased in the table below: 

 

 

Company’s Business Verticals:

Private Wealth Vertical.

  • The PW vertical caters to HNI and UHNI segment vertical where company manages Rs. 294.72 billion in AuM as on August 31, 2021.
  • As of August 31, 2021, PW vertical caters to 6,564 active client families, serviced by a team of 233 RMs.

 

 

Digital Wealth Vertical.

  • AR Digital wealth (“DW vertical”) is a fin-tech extension of our proposition, born from the extensive learnings from experience in the Private Wealth solutions.
  • The idea was to address the large mass affluent segment of the market with a wealth solution delivered through a ‘phygital channel’ i.e a combination of human distributor empowered with technology.
  • As of August 31, 2021, the AuM for DW vertical was Rs.7.38 billion with 3,491 clients and 195 client engagement partners.

 

 

 

Management Team:

  1. Mr. Anand Rathi (Designation: Chairman and Non-Executive Director)
  2. Mr. Pradeep Gupta (Designation: Non-Executive Director)

 

 

 

 

Objectives of the Issue:

Offer for Sale (OFS): Rs.660 cr

The proceeds from the Offer for Sale shall be received by the Selling Shareholders.Company shall not receive any proceeds from the Offer for Sale.

 

 

 

Positives for the Company:

Focus on the underserved and less price sensitive HNI segment.

  • Company believes, the HNI segment of clients (i.e., individuals with net worth between Rs.5 – 50 crores), is an attractive and underserved segment in terms of quality of service and creating a platform to serve this segment is often time consuming and difficult to build.
  • Company has experienced that the Clients belonging to the HNI segment are less price sensitive and appreciate the quality of personalized services company offers.
  • Company’s client families have consistently grown with new family additions of 965, 863, 988 and 455 in Fiscal 2019, Fiscal 2020, Fiscal 2021 and for the period ended August 31, 2021 respectively

 

 

Achieved a dominant position in the distribution of financial products.

  • Company has achieved a dominant position in the distribution of financial products, with a focus on the growing HNI segment through an uncomplicated, holistic and standardised offering, delivered through an entrepreneurial team of private wealth professionals, known as Relationship Managers (“RMs”).

 

 

 

Financials of the Company:

(in Crores) FY 17 FY 18 FY 19 FY 20 FY 21 31st Aug 21
Revenue 42.54 223.72 284.1 336.4 279.2 168.9
Net Profit (-0.16) 46.08 58.4 61.6 45.0 51.0

 

 

IPO Details:

Details Info
Issue Opens on 2nd December 2021
Issue Closes on:. 6th December 2021
Issue Price Rs. 530 – 550
Face Value Rs.5
Minimum Lot 27 Shares
Minimum Investment Rs. 14,850
Issue Constitutes 28.83%
Issue Size Rs.660 cr ($88 million)
Market Cap Rs. 2277 cr ($303 million)
Listing at NSE & BSE
Equity Shares Offered (OFS) 1,20,00,000
Equity Shares Prior to the Issue 4,16,16,227
Equity Shares after the issue 4,16,16,227

 

 

Important Dates:

Finalization of Basis of Allotment On or before 9th December 2021
Initiation of Refunds On or before 10th December 2021
Credit of Equity Shares: On or before 13th December 2021
Listing Date: On or before 14th December 2021

 

 

Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3
QIB 23,50,000 0.01 0.17
NII 17,62,500 1.93 3.04
Retail 41,12,500 2.42 4.74
Employee 2,50,000 0.42 0.66
TOTAL 84,75,000 1.59 3.00

Note: Retail Subscription on the basis of Applications: 4.25x

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
10.85 50.69 18.68% 58.46

 

 

Check IPO Allotment Status:

Link InTime Website: https://linkintime.co.in/PublicIssue/

BSE IPO Website: https://www.bseindia.com/IPO/Allotment

 

Company Contact Info:
ANAND RATHI Wealth Services Ltd
11th Floor, Times Tower
Kamala City, Senapati Bapat Marg
Lower Parel, Mumbai 400013
Maharashtra
Telephone: +91 (22) 4047 7000
Email: csarwsl@rathi.com
Website: www.arwealth.in

 

IPO Registrar Info:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai 400 083, Maharashtra, India
Telephone: +91 (22) 4918 6200
Email: arwsl.ipo@linkintime.co.in
Website: www.linkintime.co.in