Anand Rathi Group’s Brokerage Arm Files DRHP With SEBI For IPO; Eyes To Raise Rs 745 Cr

Anand Rathi Share and Stock Brokers Ltd., the broking arm of the Anand Rathi Group, is a well-known full-service broking firm with more than 30 years of experience in India has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for its Rs 745 crore IPO. The IPO is a fresh offering of shares up to Rs 745 crore, with a face value of Rs 5 including an option for eligible employees to reserve their subscriptions.

The company may take into consideration a pre-IPO issuance of certain securities totalling up to Rs 149 crore after consulting with the BRLMS. The amount raised in accordance with the pre-IPO placement will be excluded from the new issue if the pre-IPO placement is successful. The Rs 550 crore in proceeds from the fresh public offering would be utilised for general corporate objectives as well as the company's long-term working capital needs.

Through the book-building process, the issue is being made, with 50% of the net issue reserved for qualified institutional investors and non-institutional and retail individual investors receiving no less than 15% and 35% of the net offer, respectively. Due to a rise in interest income, fees, and commission income, revenue from operations of the company climbed 45.74% from fiscal 2023 to fiscal 2024, reaching Rs 681.79 crore. From Rs 37.74 crore in Fiscal 2023 to Rs 77.29 crore in Fiscal 2024, the profit after tax rose by 104.77%. Revenue from operations for the six months ending September 30, 2024, was Rs 441.72 crore, while profit after tax was Rs 63.66 crore.

The issue's registrar is Link Intime India Private Limited, while the book-running lead managers are Nuvama Wealth Management Limited, DAM Capital Advisors Limited, and Anand Rathi Advisors Limited. It is proposed that the equity shares of Anand Rathi Share and Stock Brokers Ltd be listed on both the BSE Limited and the National Stock Exchange of India Limited.

Under the "Anand Rathi" brand, Anand Rathi Share and Stock Brokers Limited offer a variety of financial services, such as broking, margin trading, and financial product distribution. The firm services a wide range of customers, including institutional clients, high-net-worth individuals (HNIs), retail investors, and ultra-HNIs. A broad range of asset classes, including stocks, derivatives, commodities, and currency markets, are covered by the company's investment products.

With a strong network of 90 branches in 54 Indian cities as of September 30, 2024, Anand Rathi Share & Stock Brokers is backed by 1,123 authorised persons in 333 locations. Based on broking revenue over NSE Active Clients during the period, the broking company had the highest average revenue per client (ARPC) within its peer group in FY24, according to CARE.