Anand Rathi Wealth, a part of Anand Rathi Group, a financial services company, has filed preliminary papers with market regulator SEBI to raise funds via an initial public offering (IPO).
The IPO is entirely an offer for sale (OFS) of 1.2 crore shares by promoters and existing shareholders, the company's draft red herring prospectus (DRHP) showed.
Anand Rathi Financial Services Ltd (ARFSL) will offer 9.29 million shares and Anand Rathi, Pradeep Gupta, Priti Gupta, Supriya Rathi, Amit Rathi, Rawal Family Trust, Feroze Azeez will offer up to 375,000 shares each. Jugal Mantri, the Group CFO, will offer up to 90,000 shares.
The company has appointed Equirus Capital, BNP Paribas, IIFL Securities Limited, Anand Rathi Advisors Limited as the merchant bankers to the IPO. The shares will be listed on both BSE and NSE.
Anand Rathi Wealth operates in the financial services industry, focusing on mutual fund distribution and the sale of financial products. It has been ranked among the top three non-bank mutual fund distributors in India by gross commission earned in the fiscal year 2019-20.
It manages Rs 26,058 crore in assets under management (AUM) as of March 21 and caters to 6,109 active client families.
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.
The company aims to enhance its brand name and provide liquidity to the existing shareholders via the IPO. It had filed draft papers with SEBI for a Rs 425-crore IPO in 2018 but had withdrawn the proposal.