The IPO is entirely a fresh issue of equity shares, with a price band of Rs 393–414 per share. At the upper end of the band, the company’s post-issue market capitalization is estimated at approximately Rs 2,596 crore.
Anand Rathi Share IPO Subscription Update
As of 11:05 AM on Day 3, the IPO has recorded a total subscription of 1.65 times, according to stock exchange data.
Retail Individual Investors (RIIs): The retail segment showed moderate demand, subscribing 1.88 times to the 65.45 lakh shares reserved for RIIs.
Non-Institutional Investors (NIIs): High-net-worth individuals and corporate investors subscribed 3.26 times to their 28.05 lakh share allocation.
Qualified Institutional Buyers (QIBs): Institutional participation remains minimal, with only 3% subscription of the 37.40 lakh shares allocated to this category.
Anand Rathi Share IPO Grey Market Premium (GMP) Today
According to market sources, the grey market premium (GMP) for the IPO is currently around 7%. While GMPs are unofficial indicators and may not always reflect actual listing performance, this premium suggests moderately positive investor sentiment and the potential for short-term gains.
Business Overview
With over three decades of experience, Anand Rathi Share is a full-service brokerage firm offering a wide array of trading services across equities, derivatives, commodities, and currencies. The company also provides margin trading facilities (MTF) and distributes a comprehensive range of financial products to its clients.
As of March 2025, Anand Rathi Share serves more than 220,000 active clients across India. Its network spans 90 branches in 54 cities, supported by 1,125 authorized representatives operating in 290 cities.
The company follows a digital-first approach through trading platforms such as Trade Mobi, AR Invest, MF Client, and Trade Xpress, which play a key role in attracting and engaging customers.
Financial Performance
Anand Rathi Share has demonstrated robust financial growth in recent years. Between FY23 and FY25, its revenue grew at a CAGR of 34%, reaching Rs 846 crore. EBITDA and profit after tax (PAT) posted even stronger growth, with CAGRs of 65% and 66%, respectively, as PAT surged from Rs 38 crore in FY23 to Rs 104 crore in FY25.
Profitability improved significantly, 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, reflecting effective capital management.
Anand Rathi Share ranks among the industry leaders in average revenue per client (ARPC), driven by strong growth in its MTF business, which grew at a CAGR of 35%, reaching Rs 686 crore over the same period.
Use of IPO Proceeds
Net proceeds from the IPO will primarily be allocated to long-term working capital requirements of Rs 550 crore, along with general corporate purposes. Post-IPO, the promoter’s shareholding is expected to decrease from 98.1% to 69.9%.
Valuation and Investment Outlook
At the upper price band of Rs 414, the IPO is priced at a price-to-earnings (P/E) multiple of 25.1x based on FY25 earnings. SBI Securities has issued a “Subscribe for the long term” rating, citing Anand Rathi Share’s diversified revenue streams, strong brand reputation, consistent financial performance, and high client retention as its key strengths.
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