Anand Rathi Share and Stock Brokers IPO subscribed 3x so far on Day 3: Check GMP

The ₹745 crore issue of Anand Rathi Share and Stock Brokers Ltd., which closes for subscription on September 25, continues to see a strong response, being subscribed to 2.88 times so far on the third and final day of bidding.

According to exchange data, the retail category was subscribed 2.56 times, qualified institutional buyers (QIBs) subscribed 0.14 times, and non-institutional investors (NIIs) 7.35 times.

In the unofficial market, Anand Rathi shares are quoting at a GMP of ₹37, or about 9% above the issue price of ₹414. If this trend sustains, the stock could list near ₹451, giving investors healthy listing gains.

The Anand Rathi Group's brokerage arm has fixed a price band of ₹393-414 per share for its maiden public issue. Investors can bid for a minimum of 36 shares in one lot and in multiples thereof.

The IPO comprises of entirely fresh issue with no offer-for-sale component, while there is reservation of ₹10 crore worth shares in the offer for its employees.

Ahead of the issue opening, the company raised ₹220.49 crore from anchor investors such as Pinebridge Global Funds, Singularity MF, Morgan Stanley India Investment Fund, among others.

About ₹550 crore of the net IPO proceeds will be utilised mainly for its long-term working capital requirements, and will keep the remaining amount for general corporate purposes.

Company overview

Anand Rathi Share and Stock Brokers, which valued at ₹2,600 crore, is a full-service brokerage house, providing broking services, margin trading facility and distribution of financial products under the brand Anand Rathi, through a network of 90 branches, 1,125 authorised persons in India, and online and digital platforms.

Catering to a diverse clientele, the company serves retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.

Financials

The company's financial performance in the recent past years has been healthy with profit in FY25 rising 34% to ₹103.6 crore, compared to ₹77.3 crore in the last year. Revenue in the same fiscal years rose by 24% to ₹845.7 crore, up from ₹681.8 crore.

Book running lead managers

Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors will manage the Anand Rathi IPO, while MUFG Intime India is the registrar to the issue.

The IPO share allotment will be finalised by September 26, while the trading in Anand Rathi shares will commence on the bourses with effect from September 30.