Anand Rathi Wealth shares are set to make their stock market debut on Tuesday. Anand Rathi Wealth -- a part of financial services group Anand Rathi -- commanded a premium of Rs 50 in the grey market on Tuesday, said dealers, ahead of the listing. That was down 60 percent compared to Anand Rathi's grey market premium (GMP) of Rs 125 during its IPO.

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Grey market is an unofficial market for unlisted securities.

The listing of Anand Rathi Wealth shares on stock exchanges BSE and NSE comes days after ace investor Rakesh Jhunjhunwala-backed Star Health made a weak market debut before crossing its issue price.

Anand Rathi Wealth GMP

Source: IPO Watch

"The listing, in my opinion, should be a moderate one with a marginal (listing) gain of 5-10 percent only," said Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities.

"Anand Rathi Wealth received a moderate response to its IPO, which looked fully priced against the company's performance till FY21. However, the company posted exceptional growth in the first five months of FY22. Hence, the issue may list around Rs 570-600," he said.

The Anand Rathi Wealth IPO, which was open for bidding from December 2 to December 6, saw an overall subscription of nearly 10 times. The IPO received bids for a total of 8.3 crore shares as against the 84.8 lakh shares on offer.

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The Mumbai-based financial services firm's IPO was entirely an offer for sale (OFS) of equity worth Rs 660 crore by promoters and existing shareholders.

The portions reserved for non-institutional investors and retail investors were subscribed 25.4 times and 7.8 times respectively. The quota for qualified institutional buyers (QIBs) saw a subscription of 2.5 times.

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First Published:Dec 14, 2021 8:28 AM IST