Anand Rathi Wealth Limited, one of the leading non-bank wealth solutions firms in India, has filed its papers with the regulator for the IPO. As per market sources the issue size is expected to be around Rs 1000 crs.
The Initial Public Offering is an Offer of Sale of up to 1,20,00,000 equity shares of face value of Rs 5 each by Promoter Selling Shareholders - Anand Rathi Financial Services Limited, Anand Rathi, Pradeep Gupta and Other Selling Shareholders - Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, Jugal Mantri, and Feroze Azee. The Company will not receive any proceeds from the issuance.
The issue is being made under rule 19(2)b of the Securities Contracts (Regulation) Rules, 1957, as amended, (the "SCRR") and Regulation 31 of the SEBI ICDR Regulations where allocation to QIBs is 50%, NIIs is 15% and RIBs is 35%.
The HNI focused company, ARWL commenced activities in 2002 as an AMFI registered mutual fund distributor and evolved into providing a mix of wealth solutions, financial product distribution and technology solutions to a wide spectrum of clientele. As per CARE Advisory Research the Mumbai based Company, has been ranked amongst the top three non-bank mutual fund distributors in India by gross commission earned in Fiscal 2020.
Between FY20-21 the company's flagship vertical Private Wealth has grown at a CAGR of 20.17%. As on March 31, 2021, it managed an AUM of Rs. 26058 Crores and catered to 6,109 active client families by a team of 233 Relationship Managers. Over 50% of its clientele has been associated with the company more than 3 years.
In addition to PW vertical, Company has two other new age technology led business verticals, i.e., Digital Wealth ("DW") and Omni Financial Advisors ("OFA").
India has the key ingredients of a high growth wealth management market and is on the move to become the fourth largest private wealth market globally. Experts are expecting Financial Assets to reach Rs.512 trillion at a CAGR of 14.27% and Physical Assets to grow at 8.14% CAGR to reach Rs.299 Trillion.
Investment Bankers appointed to the issue are Equirus Capital Private Limited, BNP Paribas, IIFL Securities Limited and Anand Rathi Advisors Limited.