Anand Rathi Share and Stock Brokers Seeks Rs 745 Crore Through IPO Filing with Sebi

Anand Rathi Share and Stock Brokers, part of the Anand Rathi Group, has submitted draft documents to Sebi for an IPO worth Rs 745 crore. This IPO will be a fresh issue of shares, with some reserved for eligible employees. The company might raise Rs 149 crore through a pre-IPO placement, which could reduce the IPO size.

The funds raised will primarily support long-term working capital needs and general corporate purposes, as per the draft red herring prospectus. Anand Rathi Share and Stock Brokers offers services like broking, margin trading, and financial product distribution under the Anand Rathi brand. Their clientele includes retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.

Client Demographics and Network

As of September 2024, 85% of their 1.46 lakh active clients were over 30 years old. The company operates through 90 branches in 54 cities across India. They are supported by 1,123 authorised agents in 333 cities, approved by relevant stock exchanges.

Financial Performance

In fiscal 2024, the company's revenue from operations rose by 46% to Rs 682 crore from Rs 468 crore in fiscal 2023. Profit after tax increased significantly from Rs 37.74 crore in fiscal 2023 to Rs 77.29 crore in fiscal 2024. For the six months ending September 30, 2024, revenue was Rs 441.72 crore with a profit after tax of Rs 63.66 crore.

Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors are leading the book-running process for this IPO. The shares are set to be listed on both the National Stock Exchange of India Ltd and BSE.

The company's diverse client base and strong financial performance highlight its growth potential in the financial services sector.