News

Anand Rathi IPO Day 1 LIVE: The subscription process for the public offering of Anand Rathi Group's brokerage arm, Anand Rathi Share and Stock Brokers, is now underway. Anand Rathi IPO date of subscription is scheduled for Tuesday, September 23 and will close on Thursday, September 25. Anand Rathi IPO price band has been fixed in the range of ₹393 to ₹414 per equity share of the face value of ₹5.

Anand Rathi IPO GMP today or grey market premium is ₹31. This indicates Anand Rathi share price were trading at a premium of ₹31 in the grey market on Tuesday, according to investorgain.com.

Anand Rathi IPO involves a completely new issuance of shares, with no offer for sale (OFS) included.

The ₹550 crore raised from the Anand Rathi IPO will be utilized to meet the company's long-term working capital needs, with a portion allocated for general corporate purposes.

Anand Rathi Share and Stock Brokers Ltd offers an extensive array of financial services, which encompasses broking, margin trading, and the distribution of financial products, all under the 'Anand Rathi' brand. The company serves a varied clientele, including retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.

As of March 2025, Anand Rathi Share and Stock Brokers operates a solid network of 90 branches in 54 cities across India, backed by 1,125 authorized persons (agents certified by applicable stock exchanges) in 290 cities.

Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors are serving as the book-running lead managers.

(Stay tuned for more updates)

"At the lower and upper price bands, Anand Rathi Share & Stock Brokers Ltd. is valued at an FY25 P/E of 23.8x/25.1x on a post-issue capital basis. Backed by the strong Anand Rathi Group brand, ARSSBL stands out with one of the highest ARPCs in the industry. Supported by rising retail investor participation, its diversified business model, and robust client franchise, the company is well-positioned for sustained growth.

Considering the growth potential of the capital markets over the period FY25-28P at a CAGR of 16-18%, we recommend that investors to SUBSCRIBE to the issue for the long term at the cut-off price," said SBICAP Securities.

They are subject to extensive statutory and regulatory requirements and supervision. Any failure to comply with applicable law or changes in the regulatory framework could result in action being initiated against them by relevant authorities which may have a material adverse impact on their business, results of operations and financial condition.

India’s broking industry is poised for robust expansion in the coming years, supported by multiple strong growth drivers and a favorable macroeconomic outlook. According to industry reports, the sector was valued at Rs. 52,000 crore in FY25 and is expected to register a CAGR of 16-18% over the next 2-3 years. This growth is propelled by rising retail investor participation, increasing financial literacy, and deeper penetration of digital trading platforms. Regulatory reforms, such as SEBI’s easing of margin requirements and focus on transparency, have fostered inclusivity and market efficiency.

“The company is launching its IPO at the higher end of the valuation spectrum, reflecting confidence in its robust business model and growth prospects. Notably, Anand Rathi boasts the highest ARPC among its peers, which highlights its strong client engagement and effective monetization strategies. Therefore, it is recommended to “Subscribe” to the IPO for long-term investment, considering it’s valuation and growth potential,” said Adroit Financial Services.

The company relies on authorised partners to service clients. While the company enter into a prescribed contract with each of the authorised persons associated, there can be no assurance that the company will be able to retain the services of such authorised persons. This may impact business operations and expansion strategies.

Anand Rathi IPO subscription status was 8% on day 1. The retail portion was subscribed 12%, and NII portion has been booked 7%, Qualified Institutional Buyers (QIBs) portion received is yet to receive bids. The employee portion received 17% bids.

The company has received bids for 10,18,332 shares against 1,33,63,342 shares on offer, at 10:39 IST, according to data on BSE.

As per CARE Report, they had the highest ARPC amongst peer set during Fiscal 2025. Their ARPC during Fiscals 2025, 2024 and 2023 was ₹29,347, ₹30,922 and ₹26,012 respectively. 1,30,502 of their Active Clients, representing 58.91% of their Active Clients, as of March 31, 2025 had a vintage of more than 3 years and 99,422 of their Active Clients, representing 44.88% of their Active Clients as of March 31, 2025 had a vintage of more than 5 years.

The MTF business has been a key contributor to ARPC expansion. Clients availing MTF services generate significantly higher revenues compared to non-MTF clients, strengthening ARSSBL’s overall profitability profile. MTF book has grown from ₹377 cr in FY23 to ₹686 cr in FY25, a CAGR of 35% over

FY23-25.

• Regulatory risk: The broking industry is highly regulated by the SEBI, and any adverse regulations or any failure to comply with a regulation may have an adverse impact on the business. Furthermore, any changes to weekly index expiry framework might adversely impact the business.

• Legal risk: Anand Rathi Commodities Limited (ARCL), one of the Group Companies, and a few of its directors have been charge sheeted under various provisions of law. Any adverse outcome in the aforesaid proceedings would have a material adverse effect on the reputation of the company and the Anand Rathi group.

The brokerage firm serves clients through (a) a physical network of 90 branches in 54 cities, (b) a strong base of 1,125 authorised persons across 290 cities, and (c) digital platforms catering to retail, HNI, UHNI, and institutional clients. Its digital-first approach enables efficient customer acquisition and service delivery in locations without physical presence

The revenue generated from operations for the company reached ₹845.70 crore in FY25, compared to ₹467.83 crore in FY23, indicating a compound annual growth rate (CAGR) of 34.45 percent. Simultaneously, the profit after tax surged from ₹37.75 crore to ₹103.61 crore during the same timeframe, achieving a CAGR of 65.68 percent.

Anand Rathi IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Anand Rathi IPO basis of allotment of shares will be finalised on Friday, September 26 and the company will initiate refunds on Monday, September 29 while the shares will be credited to the demat account of allottees on the same day following refund. Anand Rathi share price is likely to be listed on BSE and NSE on Tuesday, September 30.

Anand Rathi Share and Stock Brokers announced on Monday that they have secured slightly more than ₹220 crore from anchor investors, just one day prior to the opening of their initial public offering (IPO) for subscriptions.

Participating in the anchor round were institutions such as HDFC Mutual Fund, Quant Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Life Insurance Company, and Kotak Mahindra Life Insurance Company, as stated in a circular posted on the BSE's website.

According to the circular, the brokerage has allocated 53.26 lakh equity shares to 15 funds at a price of ₹414 per share, resulting in a total transaction value of ₹229.5 crore.

Anand Rathi IPO GMP today or grey market premium is ₹31. This indicates Anand Rathi share price were trading at a premium of ₹31 in the grey market on Tuesday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Anand Rathi share price was indicated at ₹445 apiece, which is 7.49% higher than the IPO price of ₹414.

According to the grey market activities observed over the last nine sessions, the present GMP ( ₹31) indicates a downward trend. The minimum GMP recorded is ₹0.00, while the maximum stands at ₹70, based on expert analysis.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.