Anand Rathi Group’s brokerage arm Anand Rathi Share and Stock Brokers files DRHP with SEBI for ₹745 crore IPO

Upcoming IPO: Anand Rathi Share and Stock Brokers, the brokerage arm of Anand Rathi, has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The IPO is entirely a fresh issue of shares up to ₹745 crore.

The proceeds from the fresh issue to the extent of ₹550 crore, will be used to fund the long-term working capital requirements of the company and general corporate purposes.

The issue is being offered through the book-building process, with up to 50% of the net issue allocated to qualified institutional buyers, and no less than 15% and 35% allocated to non-institutional and retail individual investors, respectively.

The company, in consultation with the BRLMS, may consider a pre-IPO placement of specified securities, aggregating up to ₹149 crore. Nuvama Wealth Management Limited, DAM Capital Advisors Limited, and Anand Rathi Advisors Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar to the issue.

The equity shares are proposed to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

About The Company

Anand Rathi Share and Stock Brokers Limited provides a wide range of financial services, including broking, margin trading, and distribution of financial products, under the brand name ‘Anand Rathi.’ Catering to a diverse clientele, the company serves retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.

In fiscal 2024, the brokerage firm recorded the highest average revenue per client (ARPC) within its peer group, based on broking revenue over NSE Active Clients for the period, as per the company’s DRHP.

The company’s investment offerings cover a wide array of asset classes, including equities, derivatives, commodities, and currency markets. While its client base spans various age groups, 146,029 of its active clients—representing 84.86% of the total—were over 30 years old as of September 30, 2024.

As of September 30, 2024, Anand Rathi Share and Stock Brokers operated through a network of 90 branches across 54 cities in India, supported by 1,123 authorised persons (agents approved by relevant stock exchanges) in 333 cities.

Financials

The company’s revenue from operations rose by 45.74%, reaching ₹681.79 crore in fiscal 2024, compared to ₹467.83 crore in fiscal 2023. This growth was driven by higher interest income and an increase in fees and commission income. Profit after tax also saw a significant rise of 104.77%, from ₹37.74 crore in fiscal 2023 to ₹77.29 crore in fiscal 2024.

For the six months ended September 30, 2024, the company reported revenue from operations of ₹441.72 crore and a profit after tax of ₹63.66 crore, as per the DRHP. 

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