Anand Rathi's IFSC arm gets in-principle nod for GIFT City fund management
The subsidiary can now work towards final registration. The move is a logical extension of its mutual fund foray and incremental for a ₹32,087 cr wealth manager.
— 6 earlier stories on Anand Rathi Wealth Ltd. →What's new
- Anand Rathi's wholly owned subsidiary, Anand Rathi FME (IFSC) Pvt Ltd, received in-principle approval from IFSCA.
- The approval allows the subsidiary to register as a Fund Management Entity (Non-retail) at GIFT City.
- Final registration is subject to meeting regulatory, operational and capital requirements.
Why this matters
This is a regulatory step towards launching offshore fund products, expanding beyond domestic mutual funds. But for a large-cap wealth manager with a market cap of ₹32,087 cr and AUM of ₹1,06,300 cr, the immediate financial impact is negligible. The market is likely to see it as a logical extension of the mutual fund entry, limiting surprise.
What we're watching
- Timeline for final registration — how quickly the subsidiary meets IFSCA conditions.
- Any further details on the fund products planned for GIFT City.
- Whether this leads to meaningful fee income diversification over the next 2-3 years.
The full read
Anand Rathi Wealth's subsidiary, Anand Rathi FME (IFSC) Pvt Ltd, received in-principle approval from IFSCA to register as a Fund Management Entity (Non-retail) at GIFT City. The step lets it work towards launching offshore funds. For a wealth manager with a market cap of ₹32,087 cr and AUM topping ₹1,06,300 cr, the immediate financial impact is zero. Final registration is still pending. The move is a logical extension of the mutual fund foray that pushed equity flow market share to 2.47%. It's positive but incremental. The real test will be how quickly the subsidiary converts this approval into revenue.
Questions answered
- What exactly did Anand Rathi's subsidiary get approval for?
- The subsidiary Anand Rathi FME (IFSC) Pvt Ltd received in-principle approval from IFSCA to register as a Fund Management Entity (Non-retail) at GIFT City, Gujarat. This allows it to manage offshore funds for non-retail investors.
- What are the next steps before the subsidiary can start operations?
- It must complete all regulatory, operational and capital requirements prescribed by IFSCA and receive final registration. Only then can it begin business activities.
- How significant is this for Anand Rathi Wealth?
- It's incremental. The company has a market cap of ₹32,087 cr and trailing AUM of ₹1,06,300 cr. The immediate revenue impact is negligible, though it opens a new avenue for fund management in GIFT City.
- Is this related to Anand Rathi's mutual fund business?
- Yes, but it's a separate entity focused on non-retail (institutional/offshore) funds at GIFT City. It complements the domestic mutual fund foray, which recently crossed a 2.47% market share in equity net flows.
- Could this approval lead to a re-rating of the stock?
- Unlikely in the near term. The approval is preliminary, and the financial impact will take time to materialize. The stock already trades at a high P/E of 81.0, suggesting limited room for immediate upside from this event alone.
Anand Rathi Wealth Ltd.
Latest quarter · Jun 2026
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Story so far
All notes on ANANDRATHI →- 16 Jul 2026 · 11:09 AM IST Anand Rathi's IFSC arm gets in-principle nod for GIFT City fund management
- 13d ago Anand Rathi Q1 transcript confirms known numbers, no surprises
- 18d ago Anand Rathi sees sustained 20-25% growth, MF share hits 2.47%
- 19d ago Anand Rathi AUM tops ₹1 lakh cr, Q1 profit up 24%
- 19d ago Anand Rathi profit jumps 74%, board bets on mutual fund foray