Anand Rathi Share and Stock Brokers refiles DRHP with SEBI for Rs 745 crore IPO

Anand Rathi Share and Stock Brokers, a subsidiary of the Anand Rathi Group, has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a Rs 745 crore initial public offering (IPO). The IPO is said to be entirely a fresh issue of shares aimed at raising up to Rs 745 crore.

The company said that it may consider a pre-IPO placement of up to Rs 149 crore in consolation with the lead managers of the issue, which, if executed, will reduce the fresh issue amount by the same. The IPO The proceeds from this fresh issue are earmarked largely for long-term working capital requirements, and general corporate needs.

The IPO offer is structured around a book-building process, with a pre-allocation plan that reserves up to 50 per cent of the net issue for qualified institutional buyers (QIBs). 15 per cent of the net offer is reserved for non-institutional investors (NIIs), while retail individual investors are allocated 35 per cent. Additionally, there are reserved quotas for eligible employees.

Anand Rathi Share and Stock Brokers offers comprehensive financial services including broking, margin trading, and distribution of financial products under the 'Anand Rathi' brand. The firm caters to a diverse clientele ranging from retail investors to high-net-worth individuals and institutional clients.

In the fiscal year 2024, the brokerage firm achieved the highest average revenue per client within its peer group, showcasing robust client relationships and a tailored management approach. The company had 146,029 active clients as of September 30, 2024, of which nearly 85 per cent were over 30 years.

The company operates an expansive network of 90 branches across 54 cities in India and is supported by 1,123 authorised persons in 333 cities. The digital infrastructure includes proprietary platforms such as 'Trade Mobi' and 'AR Invest', ensuring a seamless user experience and client engagement.

In financial terms, Anand Rathi Share and Stock Brokers reported a 45.74 per cent increase in revenue from operations, rising to Rs 681.79 crore in FY24, attributed to higher interest income and an increase in fees and commission income. The profit after tax also saw a remarkable increase of 104.77 per cent on a yearly basis to Rs 77.29 crore in fiscal 2023-24. For the six months ending September 2024, the firm reported Rs 441.72 crore in revenue and a profit after tax of Rs 63.66 crore.

Its subsidiary, Anand Rathi International Ventures, caters to non-resident Indians and family offices, facilitating international investments through trading memberships with various exchanges at the Gujarat International Finance Tec-City (GIFT-IFSC). This expansion supports the company’s broader financial service offerings and positions it favourably for international growth.

Nuvama Wealth Management, DAM Capital Advisors and Anand Rathi Advisors are the book-running lead managers for the IPO, with MUFG Intime India as the registrar. The equity shares are proposed to be listed on both the National Stock Exchange of India Limited and BSE.