Anand Rathi’s brokerage arm files for ₹745 crore IPO with SEBI

Anand Rathi Share and Stock Brokers, the brokerage division of Anand Rathi Group, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for a ₹745 crore initial public offering (IPO). The issue will consist solely of a fresh share issuance and will include reserved allotments for eligible employees.

The company, in consultation with book-running lead managers, may explore a pre-IPO placement of up to ₹149 crore. Any funds raised through this placement will be deducted from the fresh issue.

Proceeds from the IPO will primarily be utilised for long-term working capital needs, with ₹550 crore earmarked for this purpose, along with general corporate expenses.

The offering will follow a book-building process, with up to 50% reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and 35% for retail investors. Anand Rathi Share and Stock Brokers plans to list its equity shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Operating under the ‘Anand Rathi’ brand, the company offers diverse 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.

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As of September 30, 2024, the company reported that 1.46 lakh of its active clients—representing 84.86% of the total—were over 30 years of age. Its services span equities, derivatives, commodities, and currency markets, leveraging both physical branches and digital platforms to ensure wide reach.

The company operates a strong network of 90 branches in 54 cities, complemented by 1,123 authorised persons (stock exchange-approved agents) spread across 333 cities. Its digital platforms enable services across Tier 1, Tier 2, and Tier 3 cities, ensuring comprehensive accessibility.

The company’s revenue from operations grew by 45.74% in FY24, rising to ₹681.79 crore from ₹467.83 crore in FY23. Meanwhile, profit after tax surged 104.77% to ₹77.29 crore in FY24, compared to ₹37.74 crore the previous year.

Anand Rathi International Ventures (IFSC), its subsidiary, operates as a trading member at the Gujarat International Finance Tec-City (GIFT-IFSC), facilitating investments in international stocks and financial products for non-resident Indians (NRIs) and family offices. This subsidiary also serves as a trading member of India International Exchange (IFSC), NSE IFSC, and India International Bullion Exchange IFSC.