Citing poor market conditions, Anand Rathi Wealth Services shelves Rs 500-cr IPO
Anand Rathi Wealth has already given application for withdrawal of the proposed IPO to the market regulator SEBI
Mumbai: Wealth management services firm Anand Rathi Wealth Services on Wednesday withdrew its Rs 500-crore initial public offering (IPO) plan citing difficult market conditions.
The move comes within a fortnight of SEBI chairman Ajay Tyagi expressing concern over the poor primary market and asking merchant bankers to get the pricing right for better IPO participation.
Anand Rathi Wealth has already given application for withdrawal of the proposed IPO to the market regulator SEBI, it said in a statement.
The company had filed its draft red herring prospects in September when the markets were doing well.
"The business is doing well and we are witnessing unprecedented traction in the target markets. A large part of the IPO proceeds were in nature of offer-for-sale by the holding company but in light of the difficult market conditions, we have decided to pursue other avenues to raise funds," Anand Rathi Wealth Services managing director Amit Rathi said in the statement.
He said the company is exploring other option to raise funds from private equity players.
The company caters to clients such as HNIs and ultra-HNIs through various solutions ranging from personal service to technology and Rabo Advisory.
The company carries out its business through three verticals--private wealth management, digital wealth management and omni financial advisors.
It can be noted that after a blockbuster 2017, when IPOs mopped up a record Rs 67,200 crore-plus, the issuances are at naught now. Till mid-October this year, 24 companies raised Rs 30,959 crore through IPOs.
More than 40 companies have approvals for IPOs totaling over Rs 60,000 crore, the SEBI chief had said earlier this month, but most are not in a hurry as the secondary market sentiments are roiled with deteriorating macroeconomic scenario and global disturbances. About 30 more companies have filed the draft papers with SEBI.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
"The domestic markets are volatile, but they are globally volatile too. Our risk management economics are in place and manipulators will not be allowed to take advantage," SEBI chairman Ajay Tyagi said
IPO bonanza: As reforms momentum continue, investors will be spoilt for choice in second half of 2017
With positive macroeconomic factors, continuing regulatory and tax reforms and a robust investor and business sentiment, 2017 promises to be a healthy IPO year
Fault lines exposed in mutual fund industry; several risky investments made for higher yields: SEBI Chairman Ajay Tyagi
In a tough message for returns-focussed mutual funds, regulator SEBI Chairman Ajay Tyagi on Tuesday said the industry has exposed its fault lines with several risky investments made for want of higher yields and it is high time for them to play as per the rule book and stop compromising on safety