This Rs 745 crore IPO is a fresh issue of equity shares, priced within the band of Rs 393 to Rs 414 apiece. At the upper price band, the company’s estimated post-issue market capitalisation is around Rs 2,596 crore.
Anand Rathi Share IPO Subscription Status – Day 2 Update
As of 10:20 AM on Day 2, the IPO has seen an overall subscription of 50%, according to stock exchange data.Retail Individual Investors (RIIs): The retail segment has shown moderate interest, with 68% of the 65.45 lakh shares reserved for RIIs already subscribed, indicating good early participation from small investors.
Non-Institutional Investors (NIIs): High-net-worth individuals and corporate investors have subscribed to 70% of their allotted 28.05 lakh shares.
Qualified Institutional Buyers (QIBs): Institutional participation remains low, with just 1% subscription of the 37.40 lakh shares reserved for this category. Historically, QIB interest tends to increase closer to the final day of bidding.
Anand Rathi Share IPO GMP Today
Market sources report that the IPO’s grey market premium (GMP) hovered at around 8%, a slight improvement over yesterday’s 7% premium. While GMPs are unofficial and may not always predict listing performance accurately, the current premium suggests moderate positive sentiment and potential for short-term gains among investors.
Business Profile
With over 30 years of experience, Anand Rathi Share is a full-service brokerage firm offering trading across equities, derivatives, commodities, and currencies. The company also provides margin trading facilities (MTF) and distributes a wide range of financial products.
As of March 2025, Anand Rathi Share serves more than 220,000 active clients across India through 90 branches in 54 cities and a network of 1,125 authorised representatives spanning 290 cities.
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The firm embraces a digital-first strategy with its suite of digital trading platforms, including Trade Mobi, AR Invest, MF Client, and Trade Xpress, which are pivotal in attracting and engaging customers.
Financial Performance
Anand Rathi Share has delivered impressive financial growth in recent years. From FY23 to FY25, revenue grew at a compound annual growth rate (CAGR) of 34%, reaching Rs 846 crore. Ebitda and profit after tax (PAT) saw even stronger growth, with CAGRs of 65% and 66%, respectively. PAT increased from Rs 38 crore in FY23 to Rs 104 crore in FY25.
Profitability improved markedly, with Ebitda margins expanding from 24.6% in FY23 to 36.8% in FY25, and PAT margins rising from 8.1% to 12.3%. Return on Equity (ROE) stood at a healthy 23.1% in FY25, demonstrating efficient capital management.
The company boasts one of the highest average revenues per client (ARPC) in the brokerage industry, fueled by robust growth in its margin trading facility (MTF) business, which grew at a CAGR of 35% to Rs 686 crore during the same period.
Use of Proceeds
The net proceeds from the Anand Rathi IPO will primarily be utilised to meet long-term working capital needs (Rs 550 crore) and for general corporate purposes. Following the issue, promoter shareholding is expected to reduce from 98.1% pre-IPO to 69.9% post-IPO.
Valuation and Recommendation
At the upper price band of Rs 414, the IPO is valued at a price-to-earnings (P/E) ratio of 25.1x based on FY25 earnings. SBI Securities has given a “Subscribe for the long term” recommendation, citing Anand Rathi Share’s diversified revenue streams, strong brand presence, consistent financial performance, and high client retention as key strengths.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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