Anchor book
Ahead of the issue opening, the company raised ₹220.49 crore from anchor investors. It informed the exchanges that it had allocated 53.26 lakh equity shares at ₹414 per share to them.
Some of the marquee institutions that participated in the anchor round include HDFC Mutual Fund, Kotak MF, BNP Paribas Financial Markets, Quant MF, Aditya Birla Sun Life MF, SBI Life Insurance, Pinebridge Global Funds, Singularity MF, Morgan Stanley India Investment Fund, Kotak Mahindra Life Insurance, Bandhan MF, 360 One Equity MF, ITI MF, and Rajasthan Global Securities.
What SBI Securities says
At the lower and upper price bands, Anand Rathi Share and Stock Brokers is valued at an FY25 P/E (price-to-earnings) multiple of 23.8x-25.1x on a post-issue basis.
Backed by the strong Anand Rathi Group brand, the company stands out with one of the highest ARPCs in the industry. Supported by rising retail investor participation, a diversified business model, and a robust client franchise, it is well-positioned for sustained growth, the brokerage said.
The company has reported strong financial performance, with revenue, EBITDA, and PAT growing at a CAGR of 34%, 65%, and 66%, respectively, over FY23-FY25.
Considering the capital market's growth potential over FY25-28E at a CAGR of 16-18%, SBI Securities has recommended subscribing to the issue for the long term at the cut-off price.
Price band
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.
GMP today
Meanwhile, grey market activity suggests decent demand. The stock is commanding a GMP of about 7.49% over its issue price in the unofficial market, indicating expectations of a positive listing.
Structure
About 50% of the IPO size has been reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.
Objective
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.
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