Anand Rathi Wealth Ltd., the stock broking firm on Friday announced that it will buyback equity shares of the company, alongside releasing its quarterly earnings.
The company intends to repurchase up to 3.7 lakh fully paid-up equity shares, which carry a face value of ₹5 each through this process. The number of shares Anand Rathi Wealth intends to buyback amounts to 0.88% of the total equity shares of the company.
Buyback price has been fixed as ₹4,450 per share, which is at a 9.9% premium to Friday's closing price. The total buyback consideration will not exceed ₹164.65 crore. Anand Rathi Wealth also intends to buyback the shares through the "tender offer" route, which means that the buyback price will remain fixed and will not change.
You can read more about the difference between a tender offer and an open market buyback here.
This is also the first instance of the company carrying out a share buyback. Since its listing in December 2021, the company is paid dividends worth ₹28 per share to its shareholders. For the March quarter, the board approved a dividend of ₹9 per share, taking the overall payout since listing for the company to ₹37 per share.
Record date for the share buyback is yet to be determined.
For the March quarter, Anand Rathi Wealth reported a 52% year-on-year growth in its consolidated Assets Under Management to ₹59,351 crore. Revenue for the quarter grew by 35% from last year to ₹752 crore, while net profit also surged past the ₹200 crore mark, growing at 34% from last year.
Net inflows for the quarter grew by 41% year-on-year to ₹7,182 crore, while Equity Mutual Fund new inflows grew by 47% from the year-ago period to ₹4,628 crore.
Anand Rathi Wealth had fixed its IPO price as ₹550. The stock is up nearly 9x from those levels and over 375% in the last 12 months. Shares ended 3.7% higher on Friday at ₹4,050.
The company intends to repurchase up to 3.7 lakh fully paid-up equity shares, which carry a face value of ₹5 each through this process. The number of shares Anand Rathi Wealth intends to buyback amounts to 0.88% of the total equity shares of the company.
Buyback price has been fixed as ₹4,450 per share, which is at a 9.9% premium to Friday's closing price. The total buyback consideration will not exceed ₹164.65 crore. Anand Rathi Wealth also intends to buyback the shares through the "tender offer" route, which means that the buyback price will remain fixed and will not change.
You can read more about the difference between a tender offer and an open market buyback here.
The buyback proposal is subject to approval of shareholders by means of a special resolution through a postal ballot.
This is also the first instance of the company carrying out a share buyback. Since its listing in December 2021, the company is paid dividends worth ₹28 per share to its shareholders. For the March quarter, the board approved a dividend of ₹9 per share, taking the overall payout since listing for the company to ₹37 per share.
Record date for the share buyback is yet to be determined.
For the March quarter, Anand Rathi Wealth reported a 52% year-on-year growth in its consolidated Assets Under Management to ₹59,351 crore. Revenue for the quarter grew by 35% from last year to ₹752 crore, while net profit also surged past the ₹200 crore mark, growing at 34% from last year.
Net inflows for the quarter grew by 41% year-on-year to ₹7,182 crore, while Equity Mutual Fund new inflows grew by 47% from the year-ago period to ₹4,628 crore.
Anand Rathi Wealth had fixed its IPO price as ₹550. The stock is up nearly 9x from those levels and over 375% in the last 12 months. Shares ended 3.7% higher on Friday at ₹4,050.
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