The issue size is pegged at Rs 745 crore and comprises a 100% fresh issue with no offer-for-sale (OFS) component, meaning all proceeds will go to the company.
The IPO marks the second listing from the Anand Rathi Group and is expected to attract strong investor interest given the company’s established presence in India’s broking and financial services sector.
The public issue will open for subscription on Tuesday, September 23, and close on Thursday, September 25. Ahead of the public offering, the anchor investor bidding will take place on Monday, September 22.
Anand Rathi Share and Stock Brokers IPO structure and listing details
The IPO will be conducted through the book-building route, and the equity shares, each having a face value of Rs 5, will be listed on both the National Stock Exchange (NSE) and BSE.
NSE has been designated as the primary stock exchange for this issue.
Of the total issue size, a reservation of up to Rs 10 crore worth of equity shares has been made for eligible employees. Those applying under this employee reservation will also benefit from a Rs 25 per share discount.
Investor allocation
As per the Sebi norms, the allocation of the net issue — which excludes the employee reservation portion — will be structured as follows: not more than 50% will be allotted to Qualified Institutional Buyers (QIBs), not less than 15% will go to Non-Institutional Investors (NIIs), and at least 35% will be allocated to retail individual investors. Eligible employees applying in the reserved category will receive the aforementioned Rs 25 per share discount. Investors can bid for a minimum lot of 36 equity shares and in multiples thereafter.
Use of proceeds of Anand Rathi Share and Stock Brokers IPO
According to the company’s offer documents, Rs 550 crore from the net proceeds of the IPO will be utilised to meet long-term working capital requirements. The remaining funds will be used for general corporate purposes.
The absence of an OFS indicates that all funds raised will be directed toward the company’s operational and strategic needs, rather than being used for shareholder exits.
Anand Rathi Share and Stock Brokers valuation and financial metrics
At the lower end of the price band, the price-to-earnings (P/E) ratio based on the diluted earnings per share (EPS) for FY25 stands at 20.84 times, while at the upper end, it is 21.95 times. The floor price represents 78.60 times the face value of Rs 5, and the cap price equals 82.80 times the face value.
About Anand Rathi Share and Stock Brokers
The company’s revenues are primarily derived from its broking and margin trading operations. In FY25, broking and related services are projected to contribute approximately Rs 510.27 crore, accounting for 60.34% of operational revenue. Interest earned from the margin trading facility is expected to add another Rs 114.28 crore, or 13.51% of revenue from operations.
Together, these segments are expected to drive a total operational revenue of Rs 624.55 crore in FY25.
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Book running lead managers and registrar
The book-running lead managers (BRLMs) for the IPO are Nuvama Wealth Management Limited, DAM Capital Advisors Limited, and Anand Rathi Advisors Limited, while the registrar to the issue is MUFG Investor Services India Private Limited.
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