The Indian financial services landscape is a dynamic one, constantly evolving with new players and innovative offerings. Against this backdrop, Anand Rathi Share and Stock Brokers Ltd. is set to launch its Initial Public Offering (IPO), marking a significant event for investors. As a well-established full-service broking firm with a legacy spanning over three decades, Anand Rathi has carved a niche for itself by offering a wide array of financial products and services. The IPO is a book-build issue with a fresh issue of shares, aiming to raise ₹745 crore. This move will not only provide the company with the necessary capital for its long-term working needs but will also enhance its visibility and brand value in the highly competitive market.
Table of Contents
- IPO Key Dates and Details
- About the Company: A Legacy of Trust
- IPO Objective
- Financial Performance and Valuation Analysis
- SWOT Analysis
- Peer Comparison
- Conclusion
- FAQs
The Anand Rathi Share IPO is scheduled to open for subscription on September 23, 2025, and will close on September 25, 2025. The allotment of shares is expected to be finalised on September 26, 2025, with a tentative listing date on the BSE and NSE set for September 30, 2025. The price band for the issue has been fixed at ₹393 to ₹414 per share, and the minimum application lot size for retail investors is 36 shares, translating to a minimum investment of ₹14,904 at the upper price band.
IPO Key Details
| Detail |
Information |
| IPO Date |
September 23, 2025 to September 25, 2025 |
| Face Value |
₹5 per share |
| Issue Price Band |
₹393 to ₹414 per share |
| Lot Size |
36 Shares |
| Sale Type |
Fresh Capital |
| Total Issue Size |
1,79,95,169 shares (aggregating up to ₹745.00 Cr) |
| Employee Discount |
₹25.00 |
| Issue Type |
Bookbuilding IPO |
| Listing At |
BSE, NSE |
| Share Holding Pre Issue |
4,47,14,558 shares |
| Shareholding Post Issue |
6,27,09,727 shares |
Investor Category Reservation:
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The category-wise shares offered are as follows:
Incorporated in 1994, Anand Rathi Share and Stock Brokers has evolved into a prominent full-service broking firm, part of the larger Anand Rathi Group. The company provides a comprehensive suite of financial services, including broking in equities, derivatives, commodities, and currencies, as well as margin trading and the distribution of third-party financial products like mutual funds and bonds. With a strong physical presence across 90 branches and 1,125 authorised agents across 290 cities as of March 31, 2025, the company has a robust network to serve its diverse clientele, ranging from retail investors to high-net-worth individuals and institutions.
The company's business model is built on leveraging technology and a strong research-driven approach to provide clients with valuable insights and seamless trading experiences. Its focus on serving clients over 30 years of age, who form 84.36% of its active client base, positions it well for continued growth.
The entire proceeds from the fresh issue of the IPO, amounting to ₹745 crore, will be directed towards the company's growth and strategic objectives. The primary use of the funds is to meet the company’s long-term working capital requirements, with a substantial ₹550 crore allocated for this purpose. The remaining funds will be used for general corporate purposes, allowing the company the flexibility to invest in future growth initiatives, technological upgrades, and market expansion.
The fact that the IPO is entirely a fresh issue with no Offer For Sale (OFS) component is a positive sign for investors, as it indicates that all the raised capital will be ploughed back into the company for its benefit.
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Anand Rathi Share has demonstrated a consistent and robust financial performance in recent years. The company's revenue from operations saw a significant increase, growing at a CAGR of 34.45% from ₹467.83 crore in FY23 to ₹845.70 crore in FY25. Similarly, the profit after tax (PAT) grew at a CAGR of 65.68% from ₹37.75 crore to ₹103.61 crore over the same period. The company's key performance indicators (KPIs) further highlight its strong position. With a return on net worth (RoNW) of 23.12% and a PAT margin of 12.23% in FY25, the company shows strong profitability and efficiency. At the upper end of the price band, the price-to-earnings (P/E) ratio is approximately 21.95x based on diluted EPS for FY25, which appears reasonable when compared to some of its listed peers.
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A thorough SWOT analysis helps in understanding Anand Rathi's market position and future potential.
- Strengths: Anand Rathi Share's primary strength lies in its dominant market position as a full-service broker, with over three decades of legacy and an experienced management team. The company boasts the highest average revenue per client (ARPC) among its peer set in Fiscal 2025. This indicates a superior ability to monetise its client base. The firm also strategically leverages its Margin Trading Facility (MTF), which has grown at a CAGR of 34.91% between FY23 and FY25, and has maintained a clean record of zero non-performing assets (NPAs).
- Weaknesses: The company's revenue is highly dependent on the performance of the capital market. Any significant market downturn could negatively impact its business. It also faces intense competition from both established full-service brokers and the new-age discount brokers who are aggressively acquiring clients with low-cost models. The high dependence on broking and margin trading, which make up about 73.85% of its revenue in FY25, is another key weakness.
- Opportunities: The Indian market presents a massive untapped opportunity, particularly in Tier 2 and 3 cities, with a large and growing millennial population. Anand Rathi is well-positioned to capitalise on this with its wide pan-India presence and digital capabilities. The company can also diversify its product portfolio into new segments like loans and insurance and pursue strategic acquisitions to accelerate growth.
- Threats: The intense competition from established players like Zerodha and Angel One, as well as emerging fintech firms, poses a continuous threat to Anand Rathi's market share. The risk of technological disruption is ever-present, requiring heavy and constant investment in innovation. Furthermore, a market downturn could significantly affect retail investor activity and, consequently, the company's revenue.
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When we compare Anand Rathi Share to its listed peers, a clear picture emerges. While it may be smaller in terms of scale compared to giants like Motilal Oswal and Angel One, its growth trajectory is highly competitive. The company's valuation, at a P/E of around 21.95x, is slightly higher compared to the industry average, which stands at around 20x.
Kotak Securities has a detailed video on Anand Rathi Share & Stock Brokers' 2025 IPO analysis, featuring a ₹745 crore issue and a price band. You should watch it for the latest market insights and IPO updates.
Anand Rathi Share and Stock Brokers Ltd. presents a compelling case for investors seeking exposure to the Indian financial services sector. The company has a proven track record of consistent revenue and profit growth, a strong brand, and a diversified business model. Its strategic focus on high-value clients and its ability to generate high ARPC are key differentiators. While the company operates in a highly competitive and fragmented market, its strong fundamentals and the decision to raise capital for long-term working needs through a fresh issue are positive indicators. For well-informed investors with a long-term horizon, the Anand Rathi Share IPO offers a valuable opportunity to participate in the growth story of a mature and profitable financial services firm.
1. What is the total issue size of the Anand Rathi Share IPO?
The total issue size of the Anand Rathi Share IPO is ₹745 crore, which is entirely a fresh issue of approximately 1.80 crore shares.
2. When does the IPO open and close for subscription?
The IPO opens on September 23, 2025, and closes on September 25, 2025.
3. What is the price band and lot size for the IPO?
The price band is fixed at ₹393 to ₹414 per share, with a lot size of 36 shares for retail investors.
4. How will the company use the IPO proceeds?
The net proceeds from the IPO will be primarily used to fund the company’s long-term working capital requirements (₹550 crore), with the rest allocated for general corporate purposes.
5. What is the Grey Market Premium (GMP) for this IPO?
As of September 18, 2025, the tentative GMP for the Anand Rathi Share IPO was reported at ₹76, suggesting a potential listing gain of around 18.35% over the upper price band.
6. Is it advisable to subscribe to the Anand Rathi Share IPO?
The company has demonstrated consistent growth and has strong fundamentals, including a high ARPC and a robust network. However, the broking industry is highly competitive and subject to regulatory risks. Investors should consider their risk appetite and investment horizon before making a decision.