Anand Rathi Wealth IPO oversubscribed on day 1; check GMP, subscription standing, other details here

The Rs 660 crore IPO closes on Monday, December 6.
(Image: REUTERS)

Anand Rathi Wealth IPO noticed nice curiosity from traders on the primary day of sale with robust curiosity from retail traders and Non-Institutional Investors (NII). The wealth administration agency’s public problem sailed by way of on the primary day of sale with an total subscription now reaching 1.8 occasions the IPO dimension. In the gray market too, shares of Anand Rathi Wealth had been seeing robust curiosity from traders and buying and selling at a wholesome premium of Rs 125 per share to the IPO worth of Rs 530-550 per share. Earlier within the week, the gray market premium was round Rs 100 per share. The Rs  660 crore IPO closes on Monday, December 6.

Subscription standing

So far Qualified Institutional Buyers (QIB) have bid for the general public problem 0.01 occasions whereas Non-Institutional Investors (NII) have subscribed the difficulty 2.03 occasions. NIIs have bid for greater than 35 lakh shares towards 17.62 lakh on provide for them. Retail traders have subscribed their portion of the difficulty 2.82 occasions, bidding for greater than 1 crore fairness shares of Anand Rathi Wealth, towards 41 lakh on provide for them. Employees of the agency have subscribed to almost half their quota. With this, the general subscription has touched 1.8 occasions the difficulty dimension.

What brokerages say

ICICI Direct – Subscribe

Analysts at ICICI Direct say Anand Rathi is a play on wealth administration business the place Ultra HNI section is witnessing vital progress. “Given the fundamentals and growth potential, valuation looks reasonable, at the upper end of the price band, the company is valued at ~7.5% AUM and ~18.7x EPS (annualised FY22E). The closest listed peer IIFL Wealth has over Rs 2.2 lakh crore in AUM and trading at 25xFY22E (consensus) offers healthy growth potential too,” they added

Marwadi Financial Services – Subscribe

The brokerage agency has assigned a ‘Subscribe’ score to the IPO because the company is without doubt one of the main non-bank mutual fund distributors in India with a presence in Non-Convertible Market Linked Debentures as nicely. Analysts mentioned that the difficulty is obtainable at cheap valuations when in comparison with its peer. Marwadi Financial Services mentioned that contemplating the FY-22 annualized EPS of Rs 29.46 on a post-issue foundation, the company goes to record at a P/E of 18.67x.

Nirmal Bang – Subscribe

Analysts at Nirmal Bang highlighted that ROE of Anand Rathi Wealth has persistently been larger than friends like IIFL Wealth and Edelweiss Wealth. “ At valuations of 18.7x Apr-Aug’21 annualized earnings, ARW does offer some scope for upside on the listing, given ~20% earnings CAGR potential in the longer term combined with cross cycle ROE range of 20-30%. We recommend subscribing to the issue,” they added.

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