Anand Rathi Wealth Services (ARWSL), the wealth management arm of financial services group Anand Rathi, has filed draft papers with SEBI to raise ₹425 crore through an initial public offering (IPO).

The company intends to use the proceeds for purchasing office premises and general corporate purposes.

The firm proposed to issue fresh shares (face value ₹5) for up to ₹125 crore, while a promoter firm — Anand Rathi Financial Services — will offload shares of up to ₹300 crore through an offer-for-sale (OFS).

The company intends to use ₹75 crore of the fresh issue for purchasing and furnishing of office premises and has appointed Eksitic Advisory to estimate the acquisition cost for 20,000 sq ft carpet area in Lower Parel.

“However, as on the date of this DRHP, we have not entered into any definitive sale agreement in order to purchase the office premises or place any firm orders with respect to furnishing of the office premises,” it added.

Part of the proceeds will be invested in its subsidiaries AR Wealth Management Pvt Ltd and Ffreedom Intermediary Infrastructure Pvt Ltd for upgradation of its software and other technology-related expenses.

The company will also consider issuing shares to anchor investors a day prior to the IPO.

ARWSL had recorded total revenues of ₹219.28 crore and a comprehensive income of ₹50.21 crore in FY2018.

Equirus Capital and Jefferies India are the lead managers, while Link Intime India is the registrar to the issue. Following the IPO, the company intends to list its shares both on the BSE and the NSE.

Related Topics
comment COMMENT NOW