Anand Rathi shares list at 4% premium to issue price after over 20x subscription to IPO

Shares of Anand Rathi Share and Stock Brokers Ltd. made stock market debut alongside three other companies on Tuesday, September 30.

The stock began trading at ₹432 per share, which is a premium of 4% in comparison to the company's IPO price of ₹414 per share.

The ₹745 crore IPO was open for subscription between September 23 and September 25. Shares were sold at the upper end of the price band of ₹393 to ₹414 per share. The entire issue was a fresh issue of equity shares.

Anand Rathi's three-day IPO saw overall subscription of 20.66 times the total number of shares on offer. Subscription was led by institutional investors, whose portion was subscribed 44 times the total number of shares on offer.

The portion reserved for Non-Institutional Investors was subscribed 30 times, while that for retail investors saw a 4.8x subscription. The IPO received bids for over 27 crore shares compared to the 1.33 crore shares on offer.

Anand Rathi Share and Stock Brokers is part of the Anand Rathi Group, which deals in stock broking, wealth management, investment banking, commodity broking and capital market lending. The Wealth Management Division, Anand Rathi Wealth, listed back in 2021 and has delivered healthy returns to shareholders in the last four years.

Anand Rathi intends to use ₹550 crore from the IPO proceeds to fund long-term working capital requirements, while the rest will be deployed towards general corporate purposes.

Reports from the unlisted market indicated that the shares of Anand Rathi were trading at a premium between ₹29 to ₹31 per share, which indicates a listing at a premium in comparison to its issue price. However, it must be noted that these are speculative rates and may not have a bearing on the actual listing price.

Three other companies, Jaro Institute of Technology Management and Research, Solarworld Energy Solutions and Seshaasai Technologies will also be making their stock market debut today.