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Anand Rathi Wealth Services has decided to withdraw its plans to launch an initial public offer due to difficult market condition.
The company recently sought SEBI approval for launching the IPO through book-running lead managers to the issue.
Anand Rathi Wealth Services had filed the draft red herring prospectus in September-end when the markets were doing well. However, with the IPO markets entering a wait-and-watch mode, the company has decided to explore IPO at a later stage.
Amit Rathi, Managing Director, Anand Rathi Wealth Services, said the business is doing well and the company is witnessing traction in target markets.
However, he added, a large part of the IPO proceeds were in the nature of offer-for-sale by the holding company and in light of difficult market conditions, the group has decided to pursue other avenues to raise the requisite funds.
Interestingly, SEBI Chairman Ajay Tyagi expressed concern over slowdown in the primary market. The market regulator had given go-ahead to IPOs worth about ₹60,000 crore but very few are attempting to list.
Tyagi also cautioned investment bankers on IPO pricing and advised them to be more careful in volatile times. Gains by key benchmark index Nifty stood at 3.4 per cent this year so far, while the same for the Sensex stood at 6.5 per cent.
The IPO market went into doldrums due to tight liquidity situation after the debt crisis at IL&FS in September and global trade tensions taking a toll on investor sentiments.
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