top of page
Search

ANAND RATHI IPO

  • Writer: Yash Mehta
    Yash Mehta
  • Dec 2, 2021
  • 2 min read


IPO Details:

Price Band: 530-550

Cutoff Price: 550


About Company:


Leading non-bank wealth solutions firms in India and have been ranked amongst one of the three largest non-bank mutual fund distributors in India by gross commission earned. Anand Rathi serves a wide spectrum of clients through a mix of wealth solutions, financial product distribution and technology solutions. They provide services primarily through our flagship Private Wealth (“PW”) vertical where they manage INR 294.72 billion,

in AUM as on August 31, 2021.


Competitive Strengths:

  1. Focus on the underserved and less price sensitive HNI segment.

  2. Uncomplicated, holistic and standardized solutions offered to clients based on an objective-driven approach.

  3. One of the leading non-bank mutual fund distributors in India coupled with the presence in Non-Convertible Market Linked Debentures.

  4. Focus on value-added services, i.e., safety net and estate planning services.

  5. Focused on attracting and retaining talent through an entrepreneurial work culture.

  6. Strategic approach to the marketing initiatives.

Strategies:

  1. Increasing RM count with a focus on higher vintage RMs.

  2. Focus on scaling our business by capitalizing on current market opportunities and through geographic expansion.

  3. Brand-building efforts with an increased digital focus.


Financial Performance:



Revenue and Net Profit of the company is decreasing although the company has shown decent profits. At EPS of 11, the company's P/E is 55.


Objects of the Issue:


The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Offer for Sale


Competitors Comparison:

After comparing it with the competitors, Anand Rathi IPO seems to be slightly overvalued on the basis of P/E and P/B ratio.


Grey Market Premium:


Our view: GMP of the IPO is not that good. Valuation seems to be high in this IPO. I will subscribe to this IPO that too few lots only for listing gains.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

Like and share with others too so that they can get the gist of this IPO.


Comments

bottom of page