Upcoming IPO: Anand Rathi's brokerage arm files draft papers with Sebi

Anand Rathi Group’s brokerage arm, Anand Rathi Share and Stock Brokers, is planning to go public as the company has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, the Securities and Exchange Board of India (Sebi), for its Initial Public Offering (IPO).

 

With the IPO, Anand Rathi Share and Stock Brokers is planning to raise up to Rs 745 crore, which comprises an entire fresh issue of shares with a face value of Rs 5 apiece. The offer includes reservations for subscriptions by eligible employees.

 

In its DRHP, the company said that it intends to utilise the net proceeds from the issue to fund long-term working capital requirements and for general corporate purposes.

 

“The company, in consultation with the BRLMs, may consider a pre-IPO placement of specified securities aggregating up to Rs 149 crore. If the pre-IPO placement is completed, the amount raised pursuant to the pre-IPO placement will be reduced from the fresh issue,” the DRHP added.

 

The issue is being made through the book-building process, wherein not more than 50 per cent of the net issue will be allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer will be allocated to non-institutional investors and retail individual investors, respectively.

 

The equity shares proposed under the DRHP will be listed on the National Stock Exchange of India (NSE) and the BSE.

 

For the public offering, Link Intime India serves as the registrar, while the book-running lead managers include Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors.

 

Anand Rathi Share and Stock Brokers offers a wide range of financial services, including broking, margin trading, and the 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 authorized persons (agents approved by relevant stock exchanges) in 333 cities.

 

Revenue from operations increased by 45.74 per cent to Rs 681.79 crore in fiscal 2024 from Rs 467.83 crore in fiscal 2023, driven by an increase in interest income and fees and commission income. Profit after tax surged by 104.77 per cent, rising from Rs 37.74 crore in fiscal 2023 to Rs 77.29 crore in fiscal 2024.

 

Its subsidiary, Anand Rathi International Ventures (IFSC), operates as a trading member of India International Exchange (IFSC), NSE IFSC, and India International Bullion Exchange IFSC at the Gujarat International Finance Tec-City (GIFT-IFSC). This subsidiary provides services to non-resident Indians (NRIs) and family offices, facilitating investments in international stocks and financial products.