Anand Rathi Wealth refiles for IPO; Glenmark Life cuts issue size

 Anand Rathi Wealth refiles for IPO; Glenmark Life cuts issue size

Anand Rathi Wealth Ltd, part of financial services firm Anand Rathi, has filed draft documents with the capital markets regulator Securities and Exchange Board of India (SEBI) to float its initial public offering.

The proposed issue would be entirely an offer for sale by the company’s promoters and other shareholders.

This comes three years after it decided to withdraw a proposed issue citing “difficult market conditions”. The group had planned to raise Rs 125 crore through a fresh issue then besides offering a secondary market sale of shares by the promoters worth Rs 300 crore. At the time, SEBI had kept the IPO proposal in abeyance.

The company had highlighted certain regulatory matters as “risks” to its proposed offering at the time of filing the draft prospectus in September 2018.

The firm, which had assets under management of around $3.5 billion as of March 31, 2021, started as a mutual fund distributor almost two decades ago and later evolved to provide other services. Its private wealth vertical caters to 6,109 active client families, serviced by a team of 233 relationship managers.

It is currently present across 11 cities in India, including Mumbai, Bengaluru and Delhi. It also has a representative office in Dubai.

An affiliate of Anand Rathi Financial Services (43.54% stake), the promoter and promoter group together own around 75% stake in the company.

The company’s revenue from operations declined to Rs 265.3 crore for the year ended Mach 31, 2021 from Rs 331.8 crore the previous financial year. Its consolidated net profit, too, declined by a fourth to Rs 45.3 crore last year.

Glenmark Life

Glenmark Life Sciences Ltd, a wholly owned unit of Glenmark Pharmaceuticals Ltd, has trimmed the size of its initial public offering as it gets ready to float its issue next week.

The company plans to raise Rs 1,060 crore through a fresh issue of shares besides making an offer for sale of 6.3 million shares by its parent. Previously, it had said it planned to raise Rs 1,160 crore ($155 million) via a fresh issue while Glenn Saldanha-led Glenmark Pharmaceuticals was looking to separately sell 7.3 million shares.

Glenmark Life Sciences makes active pharmaceutical ingredients (APIs), or bulk drugs, which are used to produce medicines. Mumbai-listed Glenmark Pharma had transferred its API business to the unit effective January 2019.

Glenmark Life Sciences’ revenue from operations rose to Rs 1,885 crore for the year through March 2021 from Rs 1,537 crore the year before. Net profit climbed to Rs 351 crore from Rs 313 crore in the same period. The unit sells about a third of its products to Glenmark Pharma.

Vivek Sinha

The Capital Quest