Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Markets / Stock Markets/  Anand Rathi Wealth lists at 9% premium
BackBack

Anand Rathi Wealth lists at 9% premium

The ₹660 crore initial public offering (IPO) was subscribed 9.78 times in the price band of ₹530-550.

Anand Rathi acts as a mutual fund distributor, registered with AMFI. Photo: Courtesy Anand Rathi Wealth websitePremium
Anand Rathi acts as a mutual fund distributor, registered with AMFI. Photo: Courtesy Anand Rathi Wealth website

Mumbai: Shares of Anand Rathi Wealth made a steady market debut on Tuesday as it listed at 600 per share, 9% higher from its issue price of 550. The stock finally closed at 585 on the NSE.

The non-bank wealth solutions firm’s 660 crore initial public offering (IPO) was subscribed 9.78 times in the price band of 530-550.

Ahead of the issue, Vikas Jain, analyst, Reliance Securities, said that the IPO is valued at 51 times FY21 earnings and 9.5 times FY21 book value, which are at significant premium of its listed peer IIFL Wealth Management.

“Considering the superior asset under management (AUM) book (two times of IIFL Wealth), income yield and return ratios, we believe the premium valuations are justified and the IPO is reasonably priced. However, limited gains can be expected hereon in the medium-term perspective, as incremental value accretion can be possible only with the sustainability of strong performance in ensuing quarters," Jain said.

Anand Rathi is a mutual fund distributor registered with the Association of Mutual Funds in India. It distributes mutual fund schemes managed by asset management companies and earns distribution commissions from them.

The company is currently present in 11 cities, including Mumbai, Bengaluru, New Delhi, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida.

“Given the fundamentals and growth potential, valuation of the company looks reasonable, as at upper end of price band, the company is valued at 7.5% AUM and 18.7 times EPS (annualized FY22E). The closest listed peer IIFL Wealth has over 2.2 lakh crore in AUM and trading at 25x FY22E (consensus) offers healthy growth potential too," said ICICIdirect Research.

As of August, Anand Rathi’s private wealth vertical catered to 6,564 active client families. The vertical focuses on the HNI segment with AUM potential of 5-50 crore. The AUM of 30,209 crore comprises mutual fund schemes and other financial products such as bonds held by clients.

The firm’s private wealth AUM has grown at a compound annual growth rate of 22.47% from 18,037 crore as of 31 March 2019 to 29,472 crore on 31 March 2021.

 

 

 

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 14 Dec 2021, 10:07 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie