Anand Rathi Wealth Limited IPO

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1) They are one of the leading non-bank wealth management services firms in India that caters to a large spectrum of clients through a mix of advisory, distribution, and technology solutions. They are one of the few wealth management companies in India that cater to clients across mass affluent, HNI as well as the Ultra HNIs through various solutions ranging from personal service to technology and Robo-advisory.

They carry out their business through three business verticals, namely;

a) Private Wealth Management (“PWM”)-

They provide wealth management solutions to their clients which include facilitating client investments in various financial instruments including but not limited to, mutual funds, debentures, structured products, and equity derivatives for the purpose of investment strategies. PWM vertical caters to the Ultra HNI and HNI segments of the clientele. The revenue-generating activities include distribution of mutual funds, sale of financial products, and investment advisory fees.

b) Digital Wealth Management (“DWM”)

The DWM vertical allows them to build an economically feasible wealth management model for services to the mass affluent market.

c) Omni Financial Advisors (“OFA”).

OFA is India’s leading tech platform for IFAs to service their clients and grow their business.

2) They are part of the Anand Rathi Group, founded by Mr. Anand Rathi and Mr. Pradeep Gupta in the year 1994
with a focus on stock-broking services and subsequently, has expanded into a diversified financial services
conglomerate in the country with a presence in segments, including non-banking financial services, wealth
management, stockbroking, investment banking, and insurance broking. The Anand Rathi Group has expanded
its geographical footprint and operates through 98 offices across India and the Middle East, which they service
through business associates and representative offices/associate companies.

3) The Asset under administration (AuA) of the company has jumped from.15,489 crore to Rs.18,121 crore between the end of FY18 and FY19. The number of wealth strategists has increased from 199 in the previous year to 234 at the end of last year.

Business Performance in 2018-19

a) During the financial year 2018-19, the total income of the company was at Rs. 280.6 crore as against Rs. 219.3 crore in the previous year recording a growth of 28%.
b) Incommensurate with an increase in revenue and total expenditure also increased by 26% from Rs. 147.97 crore in FY18 to Rs. 187.04 crore in FY19.
c) During the year under review, with much higher growth in revenue versus expenditure, company’s before tax increased nearly 31 % to Rs.95.5 crore and profit after tax by 29.62% to Rs. 65.2crore.
d) Total number of Financial Strategists has increased from 199 in March 2018 to 237 in March 2019.
e) Total asset under administration (AuA) has increased from Rs. 15,489 crore to Rs. 18121 crore between the end of FY18 and FY19.
f) During the year Three Off-site conducted (Including Two International Offsites).
g) No. Of relationships (active client families) has increased from 3235 as of 31 March 18 to 4208 as of 31 March 19.
h) Increase in team size increased from 392 as of 31 March 2018 to 572 as of 31 March 2019.

Business Performance in FY20-21


Objects of the Anand Rathi Wealth Limited IPO:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the sale of up to 12,000,000 Equity Shares aggregating up to ₹ 660 Crores by the Selling Shareholders.

Anand Rathi Wealth Limited IPO Details:

Open Date: Dec 02 2021
Close Date: Dec 06 2021
Total Shares: 12000000
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 660 Cr.
Lot Size: 27 Shares
Issue Price: ₹ 530 - 550 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 14 2021

Promoters And Management:

(i) Mr. Anand Rathi, aged 74, is the Chairman and Non-Executive Director of our Company. He has been associated with our Company since March 18, 2005. He is a gold medalist Chartered Accountant of November 1966 batch from ICAI. Since completing his Chartered Accountancy over 50 years back, and prior to joining our Company, he was with Aditya Birla Nuvo Limited, with BSE (where he also held the position of President) and was one of the first directors of Central Depository Services Limited. (ii) Mr. Pradeep Gupta, aged 53, is a Non-Executive Director of our Company. He has been with the Company since March 18, 2005. He holds a Bachelor of Commerce degree from the University of Rajasthan and started his professional journey as a stockbroker of Jaipur stock exchange in 1989 besides being associated with textiles business at Daman Ganga Textiles Private Limited. He has promoted Anand Rathi Share and Stock Brokers Limited (formerly known as Navratan Capital and Securities Private Limited) and thereafter he joined ARFSL (formerly known as Anand Rathi Securities Private Limited) with Mr. Anand Rathi in the year 1998. He has over 30 years of experience in capital markets and also serves as a director of the Rotary Club of Bombay. (iii) Mr. Amit Rathi, aged 45, is a Managing Director of our Company. He has been associated with our Company since March 18, 2005. He is a qualified Chartered Accountant from ICAI and has a Masters’ in Business Administration from New York University's Leonard N Stern School of Business. He is associated with the private wealth management and investment banking businesses of the Anand Rathi Group  

Financials of Anand Rathi Wealth Limited IPO:

Particulars( in Lakhs) 5MFY21 2020-21 2019-20 2018-19 2017-18
Revenue 16980 27925 33642 28410 22372
Employee Cost 7430 15076 16720 13276 10422
Other Expenses 1880 4499 5773 6708 5218
EBITDA 7670 8350 11149 9450 8121
OPM 45% 30% 33% 33% 36%
Interest Cost 80 289 328 334 873
Depreciation 650 1773 2160 690 518
Profit Before Tax 6830 6288 8660 8425 6730
Tax 172 1833 2521 2516 2122
Net Profit 5100 4455 6139 5909 4608
NPM 30% 16% 18% 21% 21%
Shares 416 275.136 270.274 269.09 268.86
FV 5 5 5 5 5
EPS 12.26 16.13 22.36 21.96 17.19
Net Worth 29840 25318 19792 13501 7816
RONW 17% 18% 31% 44% 59%
Book Value 71.73 92 73 50 29
Capital Employed 32660 28568 24809 13550 8399
ROCE 25% 16% 37% 65% 97%

Comparison With Peers:

(Figures in Crores)
Company Revenue EBITDA OPM PAT NPM P/E Mcap Mcap/Revenue
IIFL Welath Management 1742 934 53% 459 26% 28x 13000 7.47x
Anand Rathi Wealth 407 184 45% 122 29% 18x 2288 5.62x
Note: 1. IPO price of Rs.550 per share is taken for calculating P/E and Mcap. 2. IIFL, 01.12.2021 price is taken to calculate P/E. 3. Figures of TTM i.e. FY22 is taken for comparison.

Recommendation on Anand Rathi Wealth Limited IPO:

Review and Recommendation of Anand Rathi by InvestorZone is 5/10 1. The company is into wealth management business which is a cyclic business. It grows in bull market and de-grows in bear market. 2. In the first 5 months of FY21, the company has performed really well as market sentiments are super positive. 3. PAT for annualised FY21-22 is 122 Crores. And P/E is 18.

Registrar of Anand Rathi Wealth Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Anand Rathi Wealth Limited Express Zone, A Wing, 10th Floor, Western Express Highway, Goregaon (E), Mumbai 400 063, Maharashtra, India. Phone: +91 (22) 6281 7000 Email: Website

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