Anand Rathi Share and Stock Brokers Limited, the brokerage arm of the Anand Rathi Group, has refiled its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO) amounting to Rs 745 crore. The issue will comprise entirely a fresh issue of equity shares with a face value of Rs 5. The company may also explore a Pre-IPO placement of securities worth up to Rs 149 crore, subject to regulatory approvals and discretion.
Out of the total proceeds, Rs 550 crore is earmarked to meet the company’s long-term working capital needs, while the remaining will be utilized for general corporate purposes. The company confirmed it has not raised any bridge loans, and the fund utilization plan does not require external appraisal from banks or financial institutions.
Established over 30 years ago, Anand Rathi Share and Stock Brokers is a full-service brokerage offering broking, margin trading, and distribution of investment products under the ‘Anand Rathi’ brand. The firm caters to retail clients, HNIs, ultra-HNIs, and institutional investors across India. As of September 30, 2024, the company had over 8.5 lakh clients and a workforce of 1,985 employees.
In FY24, the company reported strong traction in digital platforms, with employee benefits and brokerage sharing costs forming a major part of its operating expenses. Active clients grew at a CAGR of 38.2% between FY20 and FY25. The company has been actively investing in technology and continues to maintain long-term relationships with clients—over 48% of active clients have been associated for more than five years.
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