Anand Rathi Wealth IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 2nd December 2021 - 06:26 pm

The Rs.660 crore IPO of Anand Rathi Wealth, consisting entirely of an offer for sale (OFS) of Rs.660 crore, saw decent response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the close of Day-1, Anand Rathi Wealth IPO was subscribed 1.60X overall, with strong demand coming from the retail segment and the HNI segment with hardly any action seen in the QIB counters. The issue closes for subscription on 06th December.

As of close of 02nd December, out of the 84.75 lakh shares on offer in the IPO, Anand Rathi Wealth saw bids for 136.01 lakh shares. This implies an overall subscription of 1.60X. The granular break-up of subscriptions was dominated by the retail investors followed by the HNIs.

The QIB response was almost absent. However, the QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.

Anand Rathi Wealth IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.01 Times
Non Institutional Investors (NII)	1.93 Times
Retail Individuals	2.45 Times
Employees	0.42 Times
Overall	1.60 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 01st December, Anand Rathi Wealth did an anchor placement of 35,25,000 shares at the upper end of the price band of Rs.550 to 25 anchor investors raising Rs.193.88 crore, representing 29.38% of the total issue size.

The list of QIB investors included a number of marquee domestic anchor investors like SBI Mutual Fund, ICICI Pru MF, DSP Mutual Fund, Kotak Mutual Fund, Nippon India MF, Quant Fund, Canara Robeco Mutual Fund, Invesco India Fund, Abakkus Growth Fund, Cohesion India, Rajasthan Global Securities etc.

Check - Anand Rathi Wealth IPO - Information Note

The QIB portion (net of anchor allocation as explained above) has a quota of 23.50 lakh shares of which it has got bids for just about 0.18 lakh shares on Day-1, implying 0.01X subscription for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the robust demand for the anchor placement forebodes well for the Anand Rathi Wealth IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 1.93X (getting applications for 34.09 lakh shares against the quota of 17.63 lakh shares). This is a relatively good response on Day-1 but of course this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed a healthier 2.45X at the end of Day-1, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is 35% in this IPO.

For retail investors; out of the 41.13 lakh shares on offer, valid bids were received for 100.69 lakh shares, which included bids for 75.62 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.530-Rs.550) and will close for subscription on 06th December 2021.

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