Home / Markets / Ipo /  Anand Rathi IPO: What GMP, subscription status signal after two days of bidding
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Andnd Rathi IPO: The public issue opened for subscription on 2nd December 2021 and it will remain open till 6th December 2021. After two days of bidding, the public issue worth 660 crore has been subscribed 3.02 times. The public offer has been subscribed 4.77 times in the retail category, 0.17 times in the QIB category and 3.06 times in the NII category. As per the market observers, shares of Anand Rathi Wealth are available at a premium of 125 in the grey market today.

Anand Rathi IPO GMP

After logging continuous rise in grey market premium (GMP), Anand Rathi IPO GMP today stands at 125, 10 down from its Friday GMP of 135. Market observers said that the dip can be attributed to the weekend selloff at Indian stock market. They said that that Anand Rathi share premium had surged from 85 to 135 this week in the grey market without registering any dip on intraday basis till Friday. However, they maintained that despite 100 per cent OFS reserved for the public issue, its GMP has remained above 100 for last three days, which augurs well for the IPO. They went on to add that Anand Rathi IPO subscription status would pick up on Monday as those, who are in the wait and watch situation due to weekend falling ahead of the last date of bidding, may come in bulk and bid for the public issue.

What this GMP mean?

Market observers said that grey market premium gives an indication about the listing gain that grey market is expecting from an IPO. As Anand Rathi IPO GMP today is 125, it means grey market expects that Anand Rathi shares may list at around 675 ( 550 + 125), which is more than 20 per cent higher from its price band of 530 to 550 per equity share.

However, stock market observers advised bidders to look at the financials of the company instead of its grey market performance. They said that grey market premium is an unofficial data and it has nothing to do with balance sheet of the company. They said that it is fundamentals and valuation of a company that tells whether a public issue is strong or weak.

Anand Rathi IPO subscribe or not?

Giving 'subscribe' tag to Anand Rathi IPO; Ravi Singhal, Vice Chairman at GCL Securities said, "One can apply for the public issue despite 100 per cent OFS as valuations are looking attractive." However, Ravi Singhal of GCL Securities maintained that one should have a long-term view in regard to the public issue.

Highlighting the fundamentals of Anand Rathi Wealth that may attract bidders on Monday; Abhay Doshi, Founder at said, “Anand Rathi Wealth has posted exceptional growth in 5 months’ period ending August, 21 while the performance in last 3 fiscals looked steady. The valuations look fully priced as the issue is priced at 50x PE on the basis of performance of FY21."

Anand Rathi IPO details

Finalisation of share allotment of the wealth management company is likely on 9th December 2021 whereas shares of the company may get listed at NSE and BSE on 14th December 2021.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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