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The wealth management arm of financial services player Anand Rathi is planning to float its IPO. The Mumbai-based company is likely to file draft prospectus with SEBI in September, reported Mint. Anand Rathi Wealth IPO is likely to be managed by Equirus Capital and Jefferies.
The company is in the final leg of work for the draft red herring prospectus and it should be filed by the end of the month or in September. The IPO is expected to be INR500 crore in size, and will be a mix of primary and secondary share sales
– one of the two people Mint talked
Not much is known about the public offer at the moment as the company is yet to file its papers for the IPO.
Promoted by former BSE president Anand Rathi, the company is a well-known name in stock market and investing circles. The company’s website states that the wealth management arm had assets under management (AUM) stood at INR17,000 crore (INR170 billion) as of 31 January 2018. Apart from wealth management, the group has interests in investment banking, corporate finance and advisory, commodities, insurance broking, corporate deposits, bonds and loans to institutions, corporations, high-net worth individuals and families. The firm also offers brokerage and distribution services in equities markets.
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In India, it is present at 1,200 locations through its own offices, sub-brokers and representative offices. In addition, the company has offices in Dubai. In total, the group employs over 2,500 people.
Anand Rathi Weath IPO to follow ASK Investment Managers’ footsteps
Anand Rathi Wealth will follow its peer ASK Investment Managers which filed IPO draft prospectus earlier this month. Through the IPO, ASK plans to raise INR600 crore which will be invested in its non-banking financial company (NBFC) business. In addition, private equity investor Advent International and promoter Sameer Koticha plans to trim their shareholding.
ASK Investment Managers’ consolidated AUM across all of its business lines stood at INR30,650 crore in FY2018 with wealth advisory and distribution contributing INR20,745.6 crore, the company said in its draft prospectus. The company earned a profit of INR121.2 crore in the latest year on total income of INR464.9 crore, both figures reflecting healthy growth from previous year.