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Anand Rathi IPO (Initial Public Offering) subscription has opened today and it will remain open for bidding till 6th December 2021. India's leading non-banking wealth solutions firm plans to raise 660 crore from its public issue and it has fixed price band of the issue at 530 to 550 per equity share. Ahead of subscription opening date, grey market has started to give positive signal in regard to Anand Rathi IPO. As per the market observers, shares of Anand Rathi Wealth are available at a premium of 130 in the grey market today.

Anand Rathi IPO GMP

According to market observers, Anand Rathi IPO grey market premium (GMP) today is 130, which is 5 higher from its yesterday's evening GMP. They said that Anand Rathi Wealth shares became available in the grey market from Tuesday morning at a premium of 85. This GMP went up and hit 100 on Tuesday evening despite negative sentiment at Dalal Street. Anand Rathi IPO GMP went further up on Wednesday hitting 125 levels. Market observers went on to add that rise in GMP despite weak bias at Indian stock market augurs well about the public issue. They said that it may have a positive impact on the public issue.

What this GMP mean?

Market observers said that GMP is grey market estimate about the expected listing gain from the public issue. As Anand Rathi Wealth IPO GMP today is 130, this means grey market is expecting this public issue to list at 680 ( 550 + 130), which is more than 20 per cent from the price band of 530 to 550 per equity share. Market observers expected this premium to go further upward if there is any trend reversal in the primary market.

However, stock market experts said that GMP is not an ideal criteria for strength or weakness of an IPO. They asked bidders to look at the financials of the company as it gives clear picture about the financial status of the company.

On Anand Rathi IPO review; Ravi Singh, Head of Research & Vice President at ShareIndia said, "India’s Banking and Financial Service (BFSI) sector is offering tremendous growth opportunities due to the increasing retail participation in the capital market-linked businesses. However, the current market sentiments are not favourable and BFSI sector is the worst hit. Anand Rathi Wealth is showing a high valuation and the listing band is at upper band."

Highlighting upon the fundamentals of Anand Rathi Wealth; Abhay Doshi, Founder at UnlistedArena.com said, “Anand rathi Wealth Limited is one of the 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. Their focus is mainly on growing HNI Segment."

Abhay Doshi said that on the financial front, the company 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.

“The wealth management market has a great scope in India but the competition too is stiff. Moreover, the performance of such companies is in sync to overall market’s performance which is somewhat cyclical in nature. Based on super performance in recent period, we may see good interest for its IPO," Abhay Doshi concluded.

Anand Rathi IPO details

Anand Rathi IPO allotment is likely on 9th December 2021 whereas shares of the wealth solution firm 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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