Upcoming IPO! Anand Rathi Group's brokerage arm refiles DRHP with Sebi

Previously, Anand Rathi Share and Stock Brokers had filed its DRHP with the market regulator in December 2024

Upcoming IPO: Anand Rathi Group’s brokerage arm, Anand Rathi Share and Stock Brokers, has refiled its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (Sebi), for its Initial Public Offering (IPO). Previously,  the company had filed its DRHP with the market regulator in December 2024. 

Here are the key details of Anand Rathi Share and Stock Brokers IPO taken from its DRHP: 

  Anand Rathi Share and Stock Brokers IPO details  Anand Rathi Share and Stock Brokers seeks to raise ₹745 crore from the public offering, which comprises an entirely fresh issue of equity shares with no Offer for Sale (OFS) component.

 

The company, in its DRHP, stated that in consultation with the BRLMS, it may consider a Pre-IPO placement of specified securities, aggregating up to ₹149 crore. If the Pre-IPO placement is completed, the amount raised from the Pre-IPO placement will be deducted from the fresh issue.

 

According to the DRHP, the public offering is being made through the book-building process, where not more than 50 per cent of the net issue will be allocated to Qualified Institutional Buyers (QIBs), and no less than 15 per cent and 35 per cent of the net offer will be allocated to Non-Institutional Investors (NIIs) and Retail Individual Investors, respectively. The offer also includes reservations for subscriptions by eligible employees.

 

The proceeds from the fresh issue, to the extent of ₹550 crore, will be used to fund the company’s long-term working capital requirements and for general corporate purposes.

 

The equity shares proposed through the DRHP are to be listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

 

MUFG Intime India Private is the registrar to the issue, while the Book-Running Lead Managers (BRLMs) include Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors.

  About Anand Rathi Share and Stock Brokers

A part of the Anand Rathi Group, Anand Rathi Share and Stock Brokers offers 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 network of 90 branches across 54 cities in India, supported by 1,123 Authorised Persons (agents approved by relevant stock exchanges) in 333 cities, according to the DRHP. 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.

  Anand Rathi Share and Stock Brokers financial details

Anand Rathi Share and Stock Brokers' revenue from operations increased by 45.74 per cent to ₹681.79 crore in fiscal year 2024 (FY24) from ₹467.83 crore in FY23, attributable to an increase in its interest income and fees and commission income. Profit after tax (PAT) increased by 104.77 percent, from ₹37.74 crore in fiscal year 2023 to ₹77.29 crore in fiscal year 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, as per the DRHP.