Anand Rathi
Mainboard₹659 Cr issue
+9.46%
Listing gain over issue price
Issue size
₹659 Cr
1 lot at cut-off
₹14,850
Lot size
27shares
Open
02 Dec 2021
Close
06 Dec 2021
Allotment
09 Dec 2021
Listing
14 Dec 2021
Listing performance
Issue price
₹550
Listed at
₹602.05
Listing-day close
₹583.55
Latest price
₹2,235
Close on 23 Oct 2026
Listing gain
+9.46%
Return since issue
+1525.45%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Dec 2021 – 06 Dec 2021
- Listing date
- 14 Dec 2021
- Face value
- ₹5 per share
- Issue price
- ₹550 per share
- Lot size
- 27 shares
- Total issue size
- ₹659 Cr
- Market cap at offer price
- ₹2,289 Cr
- Promoter holding
- 74.73% → 48.82% pre-issue → post-issue
- ISIN
- INE463V01026
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Anand Rathi Advisors Ltd.
- Registered office
- Express Zone, A Wing, 10th Floor, Western Express Highway, Goregaon (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 35,25,000 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 27 shares per lot, in multiples, at ₹550
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 27 | ₹14,850 |
| Retail (max) | 13 | 351 | ₹1,93,050 |
| S-HNI (min) | 14 | 378 | ₹2,07,900 |
| S-HNI (max) | 67 | 1,809 | ₹9,94,950 |
| B-HNI (min) | 68 | 1,836 | ₹10,09,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
35,25,000
Anchor portion
₹194 Cr
at ₹550 per share
Valuation and performance
Valuation at offer price
₹550 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹2,289 Cr |
About Anand Rathi
Anand Rathi Wealth Limited (formerly Anand Rathi Wealth Services Limited) is a non-bank wealth solutions firm incorporated as a private limited company in 1995. The company is AMFI-registered as a Mutual Fund Distributor and has been ranked amongst one of the three largest non-bank mutual fund distributors in India by gross commission earned in Fiscal 2019, 2020 and 2021. The company earns revenue through commission from asset management companies for mutual fund distribution, sale of financial products including non-convertible debentures and structured products, insurance broking services, and other wealth management services. The company operates through subsidiaries and has consolidated AuM of ₹302.09 billion as of August 31, 2021.
Company Analysis
from RHPAnand Rathi Wealth Limited is one of India's leading non-bank wealth solutions firms providing mutual fund distribution and sale of financial products across wealth management, insurance, and structured products.
Anand Rathi Wealth Limited (formerly Anand Rathi Wealth Services Limited) is a non-bank wealth solutions firm incorporated as a private limited company in 1995. The company is AMFI-registered as a Mutual Fund Distributor and has been ranked amongst one of the three largest non-bank mutual fund distributors in India by gross commission earned in Fiscal 2019, 2020 and 2021. The company earns revenue through commission from asset management companies for mutual fund distribution, sale of financial products including non-convertible debentures and structured products, insurance broking services, and other wealth management services. The company operates through subsidiaries and has consolidated AuM of ₹302.09 billion as of August 31, 2021.
Financial ServicesWealth ManagementMutual Fund DistributionInsurance BrokingStructured Products/Non-convertible Debentures
Objects of the Issue
- To carry out the Offer for Sale of up to 12,000,000 Equity Shares by the Selling Shareholders ₹6,593.75 million p.24
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges p.24
- Listing on Stock Exchanges and liquidity for existing shareholders p.107
- Offer for Sale ₹6,593.75 million p.375
Issue Structure
- Total Issue
- Up to 12,000,000 Equity Shares aggregating up to ₹6,593.75 million
- Offer for Sale
- Up to 12,000,000 Equity Shares aggregating up to ₹6,593.75 million by Selling Shareholders (comprising up to 9,285,000 by ARFSL; up to 375,000 each by Mr. Anand Rathi and Mr. Pradeep Gupta; up to 375,000 each by Mr. Amit Rathi, Ms. Priti Gupta, Ms. Supriya Rathi, Rawal Family Trust; up to 90,000 by Mr. Jugal Mantri; up to 375,000 by Mr. Feroze Azeez)
- Price Band
- ₹530 to ₹550 per Equity Share
- Lot Size
- 27 Equity Shares
- Face Value
- ₹5 per Equity Share
Business Model
The company earns revenue from: (1) mutual fund distribution commission (33.29% and 34.01% of revenue for five-month period ended August 31, 2021 and Fiscal 2021 respectively); (2) sale of structured products/market linked debentures (63.21% and 59.23% of revenue for five-month period ended August 31, 2021 and Fiscal 2021 respectively); (3) insurance broking services; and (4) other wealth management services. The company also generates trail income from mutual funds distributed and earns fees from fund managers.
Business Segments
Distribution of mutual fund schemes to clients and earning commission and trail income from asset management companies
Sale of non-convertible debentures and structured products issued by Anand Rathi Global Finance Limited (ARGFL) to clients
Insurance broking services through Anand Rathi Insurance Brokers Limited
Distribution of mutual fund products to clients through demat and non-demat routes, online platforms including BSE StAR Exchange Platform, and branch-based operations
Providing investment advisory services and recommending goal-based and long-term investment plans to clients
Managing client assets and providing wealth management services through portfolio management and client relationship management
Serves HNI and UHNI segments through Relationship Managers providing comprehensive wealth solutions including mutual fund distribution, MLD sales, estate planning, and succession planning services across 11 cities in India
Fin-tech extension serving mass affluent segment through a phygital channel combining human distributors with technology. Partners are IFAs and AMFI-registered mutual fund distributors who deliver packaged investment solutions through an easy-to-use technology interface
Technology platform providing services to Independent Financial Advisors including client reporting, business dashboard, online transactions, and goal planning. Platform serves IFAs who use it to service their own clients
Provides wealth management services, investment advisory, portfolio management, and financial planning to high-net-worth individuals and institutional investors
Distributes mutual fund products and manages mutual fund portfolios for clients
Distribution income from mutual funds
Income from distribution and sale of financial products
IT enabled services revenue
Wealth management services for HNI segment (individuals with net worth between ₹50-500 million), served through Relationship Managers providing distribution of mutual funds, sale of MLDs, estate planning and succession planning services
Fintech extension addressing the mass affluent segment (individuals with financial assets between ₹1-50 million) through a 'phygital channel' (combination of human interface and technology) with a partner-led distribution model
Technology platform for Independent Financial Advisors (IFAs) to service their clients and grow their business, serving as India's leading technology platform for IFAs
SWOT Analysis
Strengths
- • Leading non-bank mutual fund distributor ranked among top three by gross commission earned(p.23)
- • Strong AuM growth with increasing client base(p.47)
- • Robust technological infrastructure enabling business continuity during crises(p.30)
- • Established brand recognition in wealth management(p.33)
- • Established brand recognition in wealth management sector with trusted reputation(p.48)
- • Extensive experience of promoters in financial services industry(p.49)
- • Strong promoter involvement and active management of business operations(p.49)
- • Low portfolio turnover ratio indicating stable, long-term investment strategy(p.49)
- • Leading non-bank mutual fund distributor focused on underserved HNI segment(p.168)
- • Process-driven, standardized approach to wealth management delivering consistent client outcomes(p.169)
- • Significant client vintage with long-term relationships(p.167)
- • Comprehensive wealth solutions including MLDs and estate planning services(p.169)
- • Strong entrepreneurial culture enabling talent attraction and retention(p.170)
- • Scalable technology platform (OFA) serving 5,062 IFAs and 1.63 million platform clients(p.174)
- • Proprietary cloud-based technology platform with in-house development team(p.176)
- • Significant cost reduction through digital transformation and work-from-home model(p.176)
- • Renegotiated real estate costs to reduce office space expenses(p.176)
- • Strong AuM growth trajectory and market recognition(p.187)
- • Multiple trademarks and intellectual property assets(p.178)
- • Market leadership in non-bank mutual fund distribution(p.300)
- • Significant AuM growth with strong client vintage(p.300)
- • Consistent AuM growth trajectory(p.300)
- • Experienced management team with deep financial services expertise(p.300)
- • Standardized operational processes for efficiency(p.300)
- • Digital transformation enhancing competitive position(p.303)
- • Diversified technology-driven business verticals(p.301)
- • Recognition as top employer and workplace(p.300)
- • SEBI-established oversight framework and regulatory compliance(p.345)
- • Material depository partnerships established(p.365)
- • In-principle listing approvals obtained from both major stock exchanges(p.347)
Weaknesses
- • Potential NBFC registration requirement creating operational complexity and compliance burden(p.35)
- • Heavy dependence on Anand Rathi Global Finance Limited for structured product sales(p.36)
- • Negative cash flows experienced in prior periods(p.45)
- • High employee attrition rates among non-key management personnel(p.34)
- • Subsidiaries incurring losses in prior periods(p.45)
- • Litigation against minority shareholders of subsidiary alleging oppression and mismanagement(p.36)
- • Weak internal controls documentation requiring strengthening(p.42)
- • Limited intellectual property portfolio with only seven registered trademarks(p.48)
- • Heavy dependence on brand 'ANANDRATHI' which is licensed and subject to termination risk(p.48)
- • Past deficiencies in mutual fund distribution activities requiring corrective actions(p.48)
- • Missing corporate and secretarial records from early company history(p.50)
- • High concentration of shareholding in promoter group, creating governance risks(p.51)
- • Risk of employee misconduct given importance of personal relationships and confidentiality(p.51)
- • High concentration of AuM in top client families(p.168)
- • Limited geographic presence with 11 cities in India(p.168)
- • Dependence on relationship managers for client acquisition and retention(p.170)
- • Minimum client relationship value threshold of ₹5 million limiting mass market reach(p.168)
- • Dependence on trademark license from promoter entity ARFSL(p.210)
- • Concentration of branch locations with near-term lease expirations(p.179)
- • Related party cost-sharing arrangements with promoter ARFSL(p.217)
- • Subsidiary FWSPL has discontinued advisory activities due to regulatory requirements(p.192)
- • Potential NBFC registration requirement creating uncertainty(p.295)
- • Significant dependence on Relationship Managers for revenue generation(p.308)
- • Dependence on structured products distributor ARGFL(p.331)
- • High employee benefit expenses relative to operations(p.303)
- • Litigation involving minority shareholders in subsidiary(p.335)
- • Historical regulatory violations by ARSSBL requiring monetary penalties(p.345)
- • Deficiencies in broker-client agreements and KYC procedures(p.345)
- • Unauthorized trading location violations by sub-brokers(p.345)
- • Fund segregation violations between commodities and securities broking(p.346)
- • Client fund mixing violations(p.346)
Opportunities
- • Expansion of wealth management market with growing high-net-worth population(p.23)
- • Growth in digital investment adoption and technology-enabled distribution channels(p.47)
- • Expansion through empanelment with additional asset management companies(p.34)
- • Strategic acquisitions and mergers for business expansion(p.45)
- • Growth potential from expanding Indian household savings and investment rates(p.51)
- • Benefits from listing to enhance brand and provide liquidity to shareholders(p.107)
- • Substantial growth in millionaire population expected in India(p.171)
- • Large untapped wealth management market with only 20% of top 8% population taking advice(p.171)
- • Expansion opportunities through geographic growth and digital outlets(p.171)
- • Shift from physical to financial assets creating demand for wealth management(p.162)
- • Growing preference for robo-advisory and hybrid models in wealth management(p.136)
- • Expansion of brand recognition and digital marketing across channels(p.177)
- • Enhanced self-service capabilities through chatbots and platform-generated insights(p.177)
- • Reference-based business model with existing client base(p.177)
- • Growth in mutual fund AuM following digital initiatives(p.176)
- • Significant growth in HNI millionaire population(p.307)
- • Substantial growth in financial assets under management(p.307)
- • Expansion into underserved mass affluent segment(p.301)
- • IFA platform leadership with significant subscriber base(p.301)
- • Cost reduction through work-from-home adoption(p.300)
- • Opportunity to scale with proven RM productivity model(p.308)
- • Expansion of mutual fund distribution capabilities(p.349)
- • Multi-state operational expansion(p.349)
Threats
- • Ongoing impact and uncertainty from COVID-19 pandemic on business operations(p.30)
- • Regulatory changes in total expense ratio reducing distribution commission income(p.30)
- • Reputational risk from ARCL litigation involving NSEL default and commodity broker misconduct(p.32)
- • Intense competition from banks, private wealth managers, and fintech players(p.40)
- • Risk of distribution arrangements termination without notice by AMCs(p.34)
- • Regulatory non-compliance and supervisory actions(p.32)
- • Data security breaches and cyber threats affecting client confidential information(p.40)
- • IT system failures and disruptions affecting business operations(p.43)
- • Performance underperformance of mutual funds distributed adversely affecting AuM growth(p.31)
- • NSE penalty and regulatory proceedings affecting group company reputation(p.39)
- • Dependence on Indian economic growth which can be subject to cyclical slowdowns(p.51)
- • Vulnerability to inflation which reduces savings and investment patterns(p.53)
- • Risk from changing regulatory requirements and taxation policies(p.53)
- • Sector-specific regulation risk including segregation of advisory and distribution(p.53)
- • Potential loss of key promoters or inability to find suitable replacements(p.50)
- • Conflicts of interest with other Promoter Group entities in similar business(p.50)
- • Global economic uncertainty and financial market instability(p.56)
- • Risk from natural disasters, pandemics and geopolitical events(p.57)
- • Foreign investment restrictions limiting shareholder liquidity(p.55)
- • Intense competition from established banks and wealth managers with larger resources(p.123)
- • Regulatory changes affecting commission structures and fiduciary responsibilities(p.148)
- • Market volatility and investment performance risks affecting client confidence(p.112)
- • Disruption from digital wealth management and robo-advisors offering lower fees(p.136)
- • Risk of talent loss and RM attrition in competitive employment market(p.170)
- • Intense competition from larger financial institutions with greater resources(p.178)
- • Regulatory changes to investment adviser framework and client segregation requirements(p.181)
- • SEBI regulatory sandbox limitations and potential future restrictions(p.180)
- • Potential loss of key compliance function if Company Secretary departs(p.177)
- • Market volatility affecting AuM valuation(p.307)
- • Dependence on Indian economy and macroeconomic conditions(p.307)
- • Competition from digital wealth advisors and robo-advisors(p.308)
- • Intense competition from large financial institutions(p.308)
- • COVID-19 pandemic impact on business operations(p.303)
- • Regulatory environment changes affecting distribution and advisory services(p.307)
- • Contingent regulatory liability regarding NBFC status(p.331)
- • NSE penalty and regulatory scrutiny(p.343)
- • Regulatory restrictions on foreign direct investment(p.374)
- • FPI investment concentration limits(p.386)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Anand Rathi | Promoter | 12.85% | — |
| Mr. Pradeep Gupta | Promoter | 5.47% | — |
| Anand Rathi Financial Services Limited | Promoter | 43.12% | — |
| Mr. Anand Rathi | Promoter | 12.85% | 12.85% |
| Mr. Pradeep Gupta | Promoter | 5.47% | 5.47% |
| Anand Rathi Financial Services Limited | Promoter | 43.12% | 43.12% |
| Mr. Anand Rathi | Promoter | 12.85% | — |
| Mr. Pradeep Gupta | Promoter | 5.47% | — |
| Anand Rathi Financial Services Limited | Promoter | 43.12% | — |
| Anand Rathi Financial Services Limited | Promoter/Promoter Group | 43.12% | — |
| Anand Rathi | Promoter/Promoter Group | 12.85% | — |
| Pradeep Kumar Gupta | Promoter/Promoter Group | 5.48% | — |
| Anand Rathi | Promoter | — | — |
| Mr. Anand Rathi | Promoter | 5,346,390 shares (₹5 face value) | — |
| Mr. Pradeep Gupta | Promoter | 2,277,012 shares (₹5 face value) | — |
| Anand Rathi Financial Services Limited | Promoter | 17,946,123 shares (₹5 face value) | — |
| Mr. Amit Rathi | Promoter/Selling Shareholder | 1,800,000 shares (₹5 face value) | — |
| Mrs. Priti Pradeep Gupta | Selling Shareholder | 1,537,500 shares (₹5 face value) | — |
| Mrs. Supriya Rathi | Selling Shareholder | 1,500,000 shares (₹5 face value) | — |
| Rawal Family Trust, acting through Mr. Rakesh Rawal | Selling Shareholder | 887,100 shares (₹5 face value) | — |
| Mr. Feroze Azeez | Selling Shareholder | 1,104,210 shares (₹5 face value) | — |
| Mr. Jugal Mantri | Selling Shareholder | 195,000 shares (₹5 face value) | — |
| Anand Rathi Financial Services Limited | Promoter Selling Shareholder | — | — |
| Mr. Anand Rathi | Promoter Selling Shareholder | — | — |
| Mr. Pradeep Gupta | Promoter Selling Shareholder | — | — |
| Mr. Amit Rathi | Selling Shareholder | — | — |
| Ms. Priti Gupta | Selling Shareholder | — | — |
| Rawal Family Trust | Selling Shareholder | — | — |
| Ms. Supriya Rathi | Selling Shareholder | — | — |
| Mr. Jugal Mantri | Selling Shareholder | — | — |
| Mr. Feroze Azeez | Selling Shareholder | — | — |
Leadership
Mr. Rakesh Rawal · CEO
Mr. Rajesh Kumar Bhutara · CFO
Mr. Ashish Chauhan · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Anand Rathi IPO FAQs
What is the lot size of Anand Rathi IPO?
The minimum lot size of Anand Rathi IPO is 27 shares. One lot costs ₹14,850 at the cut-off price.
When does Anand Rathi IPO open and close?
Anand Rathi IPO opened for subscription on 02 Dec 2021 and closed on 06 Dec 2021.
What is the listing date of Anand Rathi IPO?
Anand Rathi IPO listed on 14 Dec 2021.