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Grey market premium for Anand Rathi Wealth IPO is down to ₹25 from ₹125

Grey market premium for Anand Rathi Wealth IPO is down to ₹25 from ₹125
Stock Market2 min read
  • Anand Rathi Wealth has received a decent response from investors in the IPO as it was subscribed 9.78 times in 3 days.
  • However, the grey market premium has been falling each day. Today, GMP stood at ₹25 per share falling from ₹125 earlier.
  • The allotment of the IPO is scheduled on December 9.
Wealth management firm Anand Rathi Wealth has received good response from investors in its initial public offering (IPO) as the issue has been oversubscribed by 9.78 times.

If you have subscribed to the IPO, remember the allotment of the IPO is scheduled for tomorrow, December 9.

However, the grey market premium of the company's shares continue to fall since the last couple of days. Currently, the premium for Anand Rathi Wealth’s shares is at ₹25 per share from ₹125 earlier. The IPO is in the price range of ₹530-₹550 per share.
Investors

Subscription

Qualified institutional investors

2.50 times

Non-institutional investors

25.42 times

Retail

7.76 times

Overall

9.78 times


Anand Rathi has a dominant position in the distribution of financial products, with a focus on the growing HNI segment. Currently, Anand Rathi Wealth is present across 11 cities in India -- Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur and Noida with a representative office in Dubai.

Further, the company aims to double its assets under management in the 3-5 years, said Amit Rathi, managing director at Anand Rathi in an interview with Business Insider.

“Anand Rathi Wealth generates higher revenue yields compared to competition as the company has consciously avoided stock broking and stock advisory businesses and restricted its focus to the high yielding segments of distribution of structured products and mutual funds,” said Nirmal Bang while recommending ‘subscribe’ rating to the IPO.

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