Citing poor market conditions, Anand Rathi Wealth Services shelves Rs 500-cr IPO

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. [caption id=“attachment_4349313” align=“alignleft” width=“300”] Representational image. Reuters.[/caption] “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.