Currently, IIFL Wealth is the only listed pure wealth management company with a market capitalisation of ₹12,180 crore.
Mumbai: Anand Rathi Wealth, the wealth management arm of Anand Rathi Financial Services, has filed a draft prospectus for an initial public offering. The Mumbai-based firm and other promoters will sell 1.2 crore shares in Anand Rathi Wealth through the issue to raise about ₹800-900 crore, said investment banking sources.
While Anand Rathi Financial Services will sell 92.9 lakh shares, other promoters, including Anand Rathi, Amit Rathi, Supriya Rathi, Pradeep Gupta, Priti Gupta and Feroze Azeez, will sell 3.75 lakh shares each of the company in the IPO.
Anand Rathi Wealth, which caters to rich families, services over 6,000 clients and has 233 relationship managers. Its private wealth vertical managed ₹26,058 crore in assets under management as on March 31, 2021.
Currently, IIFL Wealth is the only listed pure wealth management company with a market capitalisation of ₹12,180 crore.
In September 2018, Anand Rathi Wealth had filed its prospectus for an IPO with the market regulator but later dropped its plan to go public, citing difficult market conditions. Anand Rathi Wealth turned profitable in the financial year FY18, with the company reporting a consolidated net profit of ₹46.08 crore on revenue from operations of ₹221.03 crore. For the year ended March 31, 2021, the company’s revenues declined by 20% to ₹265 crore. The net profit has also plunged 26% in FY21 to ₹45.30 crore.
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According to the prospectus, the decline in revenue from operations and profits was primarily due to the adverse effect of the Covid-19 pandemic, an extended period of business disruptions, stock market volatility and decrease in investor sentiments for new investment in the initial phase of the pandemic.
Equirus Capital, BNP Paribas and IIFL Securities are the investment bankers handling the IPO.
