Upcoming IPO: Anand Rathi Share and Stock Brokers refiles DRHP with SEBI for ₹745 crore public offer

Anand Rathi Group’s Brokerage Arm, Anand Rathi Share and Stock Brokers Ltd, has refiled its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise over ₹745 crore via Initial Public Offering (IPO).

The company had filed its DRHP in the month of December 2024.

The IPO with a face value of ₹5 is entirely a fresh issue of shares up to ₹745 crore.

The company, in consultation with the BRLMS, may explore a Pre-IPO placement of specified securities totaling up to ₹149 crore. If this placement takes place, the amount raised will be deducted from the fresh issue.

The company will allocate up to ₹550 crore from the fresh issue proceeds to support its long-term working capital needs and general corporate purposes.

The issue is being conducted via the book-building process, with a maximum of 50 per cent of the net issue allocated to qualified institutional buyers. At least 15 per cent and 35 per cent of the net offer will be allocated to non-institutional and retail individual investors, respectively. Additionally, there are reserved subscriptions for eligible employees.

Nuvama Wealth Management Limited, DAM Capital Advisors Limited, and Anand Rathi Advisors Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar to the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

About the company

Anand Rathi Share and Stock Brokers Limited provides a wide range of financial services, including broking, margin trading, and distribution of financial products, under the brand name ‘Anand Rathi.’ Catering to a diverse clientele, the company serves retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.

As of September 30, 2024, Anand Rathi Share and Stock Brokers operates through a robust network of 90 branches across 54 cities in India, supported by 1,123 Authorized Persons (agents approved by relevant stock exchanges) in 333 cities. Additionally, its online and digital platforms ensure that the company serves clients across Tier 1, Tier 2, Tier 3, and other cities, leveraging a multi-channel presence.

Revenue from operations increased by 45.74 per cent to ₹681.79 crore in fiscal 2024 from ₹467.83 crore in fiscal 2023, attributable to an increase in its interest income and fees and commission income. Profit after tax increased by increased by 104.77 per cent from ₹37.74 crore in Fiscal 2023 to ₹77.29 crore in Fiscal 2024.

For the six months ended September 30, 2024, revenue from operations stood at ₹441.72 crore, and profit after tax stood at ₹63.66 crore.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.