Objects of the issue:
- To carry out an offer for sale by selling shareholders
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Investment Rationale:
Growing independent financial products distribution platforms
The company offers a technology-enabled, comprehensive investment and financial services platform with end to end solutions critical for financial products distribution and presence across both
online and offline channels. They grew faster among national distributors (amongst the Top-10 mutual fund distributors) in terms of commission and AAUM with a CAGR of 34.4% and 32.5% respectively for the 5 year period ending Fiscal 2021. With the increasing financialization of investments
and a greater understanding of financial investments among Indians, there is significant potential to
launch newer products and enter into newer segments. In particular, certain asset classes are underpenetrated among their customer base and they will leverage their analytics capabilities to recommend customized products for their investor base. Apart from product distribution, they also wish to
strengthen their research and advisory offerings to their partners and retail customers. On the upper
end of the price band, the issue is valued at a PE of 33.9x based on FY22 annualized earnings,
which we believe is fairly priced. Hence, we recommend a “SUBSCRIBE” rating on this issue for the
long term.
