The grey market premium (GMP) of Anand Rathi initial public offering (IPO) has crashed from Rs 125 to Rs 25 (80% fall) in three days. The GMP which stood at Rs 125 on December 3 fell to Rs 25 on December 7, signaling a fall in positive sentiment around the stock ahead of its market debut.
The GMP of the share sale remained unchanged at Rs 25 today.
According to the current GMP, the shares will list at Rs 575 on the bourses on December 14.
The shares were offered in a price band of Rs 530-550 per share. The subsidiary of Mumbai-based financial services group Anand Rathi plans to raise Rs 660 crore at the upper end of the price band. The issue opened on December 2 and closed on December 6.
The allotment of shares will be finalised on December 9, 2021 The initial public offering of the leading non-bank wealth solutions firms in India, was subscribed 9.78 times on December 6, the final day of bidding.
The issue received bids for 8.29 crore equity shares against the IPO size of 84.75 lakh equity shares. The portion for qualified institutional buyers was subscribed 2.5 times. Non-institutional investors saw 25.42 times subscription during the IPO.
The quota meant for retail investors was subscribed 7.76 times, and employees put in bids 1.32 times the portion set aside for them. Half of the offer size was reserved for qualified institutional investors, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
The company reserved 2.5 lakh equity shares for its employees at a discount of Rs 25 per share to the final offer price.
The share sale was entirely an offer for sale (OFS) of 1.2 crore equity shares by promoters and existing shareholders. The OFS comprised sale of 92.85 lakh equity shares by Anand Rathi Financial Services, and 3.75 lakh equity shares each by Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, and Feroze Azeez, and 90,000 equity shares by Jugal Mantri. 2.5 lakh equity shares were reserved for employees.
The IPO's lot size was 27 shares for which one would have to spend Rs 14,850. A retail-individual investor could apply for up to 13 lots or 351 shares by spending Rs 1,93,050.
The objective of the offer was to achieve the benefits of listing the equity shares on the stock exchanges.
On December 1, Anand Rathi raised Rs 194 crore from anchor investors, ahead of its initial share sale. The company has decided to allocate 35.25 lakh equity shares to 12 anchor investors at Rs 550 apiece, valuing the transaction size at Rs 194 crore.
BNP Paribas Arbitrage, Goldman Sachs Funds, Ashoka India Equity Investment Trust Plc, Kuber India Fund, SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Axis MF, Tata MF and Aditya Birla Sun Life MF were among the anchor investors.
Anand Rathi Wealth is one of the leading non-bank wealth solutions firms in India. The company offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients.
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