Anand Rathi’s Brokerage Arm Eyes Rs 745 Cr IPO; Refiles DRHP With SEBI For Public Offering

For its Rs 745 crore IPO, the brokerage arm of the Anand Rathi Group, Anand Rathi Share and Stock Brokers Ltd, has resubmitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The company had earlier submitted its DRHP in December 2024. A fresh issue of shares up to Rs 745 crore is what the initial public offering (IPO) with a face value of Rs 5 is. The company may take into consideration a pre-IPO issuance of certain securities totaling up to Rs 149 crore after consulting with the BRLMS. The amount raised in accordance with the Pre-IPO placement will be excluded from the new issue if the Pre-IPO placement is successful.

The Rs 550 crore in proceeds from the fresh public offering would be utilized for general corporate objectives as well as the company's long-term working capital needs. Through the book-building process, the issue is being made, with qualified institutional buyers receiving no more than 50% of the net issue and non-institutional and retail individual investors receiving no less than 15% and 35% of the net offer, respectively.

Due to a rise in interest income, fees, and commission income, the company's revenue from operations climbed 45.74% from fiscal 2023 to fiscal 2024, reaching Rs 681.79 crore. From Rs 37.74 crore in Fiscal 2023 to Rs 77.29 crore in Fiscal 2024, the profit after tax rose by 104.77%. Operational revenue was Rs 441.72 crore for the six months ending September 30, 2024, while profit after tax was Rs 63.66 crore.

The issue's registrar is MUFG Intime India Private Limited, while the book-running lead managers are Nuvama Wealth Management Limited, DAM Capital Advisors Limited, and Anand Rathi Advisors Limited. It has been proposed that the equity shares of the company will be listed on both the BSE Limited and the National Stock Exchange of India Limited.

With more than 30 years of expertise, Anand Rathi Share and Stock Brokers Ltd., the brokerage arm of the Anand Rathi Group, is a reputable full-service brokerage firm in India. Under the "Anand Rathi" brand, Anand Rathi Share and Stock Brokers Limited offers a variety of financial services, such as broking, margin trading, and financial product distribution. Based on broking revenue over NSE Active Clients for the time, the brokerage company had the highest average revenue per client (ARPC) within its peer group in Fiscal 2024, according to CARE.

Although its clientele is diverse in age, as of September 30, 2024, 146,029 of its active clients, or 84.86% of the total, were over 30. With 90 branches in 54 Indian cities as of September 30, 2024, Anand Rathi Share & Stock Brokers is backed by 1,123 authorized persons (agents who have been certified by the appropriate stock exchanges) in 333 locations.