Anand Rathi Wealth Limited, part of Mumbai-based financial services group Anand Rathi, one of the leading non-bank wealth solutions firms in India, has received the nod from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
The IPO is entirely an offer for sale (OFS) of 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's draft red herring prospectus (DRHP) showed. The Company will not receive any proceeds from the issuance.
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").
As of March 2021, Anand Rathi, the founder of the Anand Rathi Group, holds a 12.85 percent stake in the firm, while ARFSL holds 43.12 percent. Pradeep Gupta, the co-founder and vice-chairman of the Anand Rathi Group, holds a 5.48 percent stake in the firm.
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.