Anand Rathi FME (IFSC), a wholly owned subsidiary of Anand Rathi Wealth Limited, has secured in-principle approval from the International Financial Services Centres Authority (IFSCA) for registration as a Fund Management Entity (Non-retail) at GIFT City, Gujarat. According to reports from Business Standard, this approval represents a significant milestone for the company's expansion into international financial services. The regulatory authorization designates the entity as a Fund Management Entity (Non-retail), allowing the subsidiary to proceed with the necessary steps to establish fund management operations within India's International Financial Services Centre.
The regulatory approval comes alongside exceptional Q1 FY27 financial results, with Anand Rathi Wealth reporting adjusted PAT growth of 24% year-on-year to ₹116 crore and total Assets Under Management expanding 21% year-on-year to ₹1,06,300 crore. As reported by the company, total adjusted revenue grew 18% year-on-year to ₹336 crore for the quarter ended June 30, 2026. The company also declared an interim dividend of ₹2.50 per share, which went ex-dividend on July 14, 2026. In Q1 FY26, the company's adjusted Profit After Tax stood at ₹93.8 crore and total revenue was ₹284.1 crore, showing significant scaling in the current period.
Following the regulatory approval, Anand Rathi FME (IFSC) shall undertake necessary steps, including fulfilment of applicable regulatory, operational and capital requirements as prescribed by IFSCA, for obtaining the final certificate of registration. As reported by Business Standard, the commencement of business activities will be subject to receipt of the final registration from IFSCA and compliance with all applicable laws, regulations and conditions stipulated by the regulatory authority. The subsidiary must ensure compliance with all applicable laws, regulations, and conditions stipulated by the regulatory authority before starting its business activities in the IFSC.
This approval positions Anand Rathi FME (IFSC) to operate as a fund management entity for non-retail clients within the International Financial Services Centre framework, with the license enabling the company to pitch dedicated offshore funds, Alternative Investment Funds (AIFs), and bespoke portfolios to non-resident Indians and international institutional clients. According to the company announcement, the subsidiary will be operating under the regulatory oversight of IFSCA, which governs financial services activities at GIFT City, Gujarat. The approval represents the company's strategic move to expand its fund management services into the international financial services sector, with the subsidiary now positioned to commence operations in GIFT City, a strategic financial hub aimed at attracting international business and investment.
The GIFT City license provides significant operational advantages, including a 100% tax holiday for 10 consecutive years out of 15, making it a highly cost-efficient structure for fund management operations. The expansion is supported by robust cash generation and capital efficiency, with active client families rising 13% year-on-year to 13,941 as of June 30, 2026. As reported by the company, this development enhances Anand Rathi Wealth's competitive positioning relative to other boutique wealth managers and independent financial advisers, while providing a clear medium-term growth driver supported by the rapid institutionalization of India's wealth management landscape.
