Financial services firm Anand Rathi Wealth Services, which had filed Rs 425-crore IPO papers with Sebi in September, Wednesday said it has decided to withdraw its proposed initial share-sale.
The company said it filed its draft red herring prospectus (DRHP) towards the end of September when the markets were doing well. However, with the IPO markets entering a 'wait-and-watch' mode, the firm has decided to explore the IPO at a later stage.
"Anand Rathi Wealth Services Ltd has decided to withdraw its proposed IPO and has made an application for the same to Sebi through BRLMs (book running lead managers) to the issue," the firm said in a statement.
Speaking on the development, Amit Rathi, managing director of Anand Rathi Wealth Services, said the business is doing well and the company is witnessing unprecedented traction in its target markets.
However, a large part of the IPO proceeds were in nature of offer-for-sale by the holding company, and in light of the difficult market conditions, the group has decided to pursue other avenues to raise the requisite funds, he added.
According to the draft papers, the firm's proposed IPO comprises fresh issue of equity shares by Anand Rathi Wealth Services aggregating up to Rs 125 crore and an offer-for-sale of up to Rs 300 crore by the promoter Anand Rathi Financial Services.
The firm proposed to use the IPO proceeds to purchase and furnish office premises in Mumbai. Also, it planned to invest in its subsidiaries -- ARWMPL and FIINFRA -- for upgrading and enhancing softwares, and for other technology-related expenses.
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