Anand Rathi Wealth shares surge 9% on debut; what should you do? Experts decode strategy for investors

Anand Rathi Wealth shares made a decent secondary market debut on Tuesday. Shares of Anand Rathi Wealth Ltd were listed on the BSE with over 9 per cent or Rs 52 gain. Anand Rathi shares debuted at Rs 602.05 per share on the BSE against its issue price of Rs 550 per share.  

At around 10.45 am, shares of Anand Rathi Wealth declined over 3 per cent from its listing price to Rs 585.15 on the BSE in Tuesday's intraday trade.  

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The Rs 660-crore IPO was fully subscribed on the Day 1 and saw 9.78 times subscription on the last day on December 6, 2021. The IPO had opened on December 2, 2021. The company has fixed a price band of Rs 530-550 a share for this IPO.

As the public offer makes a gain of Rs 52 on its debut, experts decode what should investors do with this share.  

Santosh Meena, Head of Research, Swastika Investmart Ltd.

Anand Rathi debuted the secondary market with a moderate listing gain. This was on the expected line. Long-term investors should hold this stock on the back of a strong industry outlook, while those who applied for listing gain can keep a stop loss of Rs 550. "New investors can look for buying opportunities at any dip with a long-term view," he added.  

Ravi Singhal, Vice Chairman at GCL Securities  

We are expecting sharp decline in Anand Rathi share price post-listing. "My advice to allottees is to book profit and re-enter at around ₹420 per share levels," he suggested.  

Parth Nyati, Founder, Tradingo

The company saw a decent response of 9.78 times from the investors and the stock was listed at Rs 600 per share as compared to the issue price of Rs 550 apiece. This was in line with our estimate. We believe the wealth creation industry has tremendous potential and may perform much better in the coming years. "Short-term investors who got the allotment can place a stop loss of Rs 550, while long-term investors can hold the stock. New investors can look for long-term investment opportunities after the market stabilises," Parth recommended.

Earlier, Zee Business Managing Editor Anil Singhvi on Tuesday said that the shares are expected to list around Rs 600-650 range against issue price. He had recommended long-term Investors to hold the shares with Stoploss of Rs 550.  

Anand Rathi Wealth operates in the financial services industry with a focus on mutual fund distribution and the sale of financial products. The company commenced activities in fiscal 2002 and is AMFI registered mutual fund distributor. It has evolved into providing well-researched solutions to its clients through a mix of wealth solutions, financial product distribution and technology solutions to a wide spectrum of clientele.