Anand Rathi Share IPO: Grey Market Premium Soars Despite Slow Subscription Start
Anand Rathi Share & Stock Brokers Ltd.'s IPO, open from September 23-25, has seen its grey market premium reach Rs 45, suggesting potential listing gains of 10.87%. However, subscription rates remain low, with an overall subscription of 0.41 times on Day 1. The Rs 745 crore IPO offers a fresh issue of 1.8 crore shares at a price band of Rs 393-414. The company, established in 1991, offers various financial services including broking, margin trading, and financial product distribution across equities, derivatives, commodities, and currency markets. The IPO is scheduled to list on BSE and NSE on September 30.
*this image is generated using AI for illustrative purposes only.
The Initial Public Offering (IPO) of Anand Rathi Share & Stock Brokers Ltd. has captured investor attention with its grey market performance, despite a tepid start to its subscription period. The IPO, which opened for subscription on September 23, has seen its grey market premium reach new heights, indicating potential listing gains for investors.
Grey Market Premium Hits Rs 45
As of September 24 morning, the grey market premium for Anand Rathi Share & Stock Brokers Ltd.'s IPO reached Rs 45, marking the highest recorded premium for this offering so far. With the upper price band set at Rs 414, the estimated listing price stands at Rs 459, suggesting potential listing gains of 10.87% for investors.
Subscription Status
Despite the bullish grey market sentiment, the IPO's subscription figures paint a different picture:
| Investor Category | Subscription Rate |
|---|---|
| Qualified Institutional Buyers (QIBs) | 0.01 |
| Non-Institutional Investors (NIIs) | 0.53 |
| Retail Investors | 0.53 |
| Overall | 0.41 |
The overall subscription rate stood at 0.41 times on Day 1, indicating a slow start to the public offering.
IPO Details
- Issue Size: Rs 745 crore
- Offer Type: Fresh issue of 1.8 crore shares
- Price Band: Rs 393 - Rs 414 per share
- Subscription Period: September 23 - September 25
- Tentative Allotment Date: September 26
- Listing Date: September 30 (Scheduled)
- Listing Venues: BSE and NSE
Company Background
Anand Rathi Share and Stock Brokers, incorporated in 1991, is a well-established name in the financial services sector. The company offers a wide range of services including:
- Broking services
- Margin trading
- Financial product distribution
These services span across various financial markets:
- Equities
- Derivatives
- Commodities
- Currency markets
Investor Outlook
The contrast between the muted subscription numbers and the high grey market premium presents an interesting scenario for potential investors. While the grey market suggests strong listing gains, the actual subscription figures indicate a cautious approach from institutional investors.
As the IPO enters its final days of subscription, all eyes will be on whether the subscription rates pick up, particularly among Qualified Institutional Buyers, whose participation often sets the tone for retail investors.
Investors are advised to conduct thorough research and consider their risk appetite before making investment decisions. The grey market premium, while indicative, is not an official metric and can be subject to fluctuations.
With the subscription window closing on September 25 and the listing scheduled for September 30, market participants will be keenly watching how this IPO unfolds in the coming days.
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