Anand Rathi Share and Stock Brokers, the brokerage arm of the Anand Rathi Group, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth ₹745 crore. This Upcoming IPO will entirely be a fresh issue and will include reserved allotments for eligible employees.
In consultation with book-running lead managers, the company may also explore a pre-IPO placement of up to ₹149 crore. Any funds raised through this pre-IPO placement will be deducted from the fresh issue amount.
The IPO will follow a book-building process, with the following allocation:
The company intends to list its equity shares on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The funds raised from the IPO will primarily be used for long-term working capital needs, with ₹550 crore specifically earmarked for this purpose. The remaining funds will be allocated towards general corporate expenses.
Anand Rathi Share and Stock Brokers operates under the ‘Anand Rathi’ brand, the company offers a wide range of financial services, including broking, margin trading, and the distribution of financial products. Its clientele comprises retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.
As of September 30, 2024, the company reported that 1.46 lakh of its active clients, representing 84.86% of the total, were over the age of 30. The company offers services in equities, derivatives, commodities, and currency markets, ensuring broad access through both physical branches and digital platforms.
The company operates a robust network of 90 branches across 54 cities. Additionally, it has 1,123 authorised persons (stock exchange-approved agents) spanning 333 cities. Its digital platforms ensure that services reach clients in Tier 1, Tier 2, and Tier 3 cities.
In FY24, the company’s revenue from operations grew by 45.74%, reaching ₹681.79 crore, up from ₹467.83 crore in FY23. Profit after tax surged 104.77%, climbing to ₹77.29 crore in FY24, compared to ₹37.74 crore the previous year.
Anand Rathi International Ventures (IFSC), a subsidiary of the company, operates as a trading member at the Gujarat International Finance Tec-City (GIFT-IFSC). The subsidiary facilitates investments in international stocks and financial products for non-resident Indians (NRIs) and family offices. It also serves as a trading member of the India International Exchange (IFSC), NSE IFSC, and India International Bullion Exchange IFSC.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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