Anand Rathi shares extend listing gains, end at 7.5% premium to IPO price on debut day

Anand Rathi Share & Stock Brokers IPO: Shares List Today

Anand Rathi Share & Stock Brokers Ltd. made a robust listing on the stock exchanges today, with shares ending at a 7.5% premium to the IPO price. The stock closed at Rs 445 on NSE, up from the issue price of Rs 414 per share.

Earlier in the day, Anand Rathi's shares opened for trade at about 4.4% premium. Anand Rathi's listing comes after the company’s Rs 745-crore IPO drew strong investor interest, being subscribed 20.66 times.

IPO subscription details

The three-day IPO, open between September 23 and September 25, saw robust participation across investor categories. The Qualified Institutional Buyers (QIBs) segment led the demand with 44 times subscription, while Non-Institutional Investors (NIIs) subscribed 30 times. Retail investors also showed healthy interest with a 4.8 times subscription. In total, the IPO received bids for over 27 crore shares compared to 1.33 crore shares on offer.

Grey market trends

Ahead of listing, reports from the unlisted market indicated a grey market premium (GMP) of Rs 29-31 per share, suggesting the possibility of a premium listing. While such speculative rates do not always reflect the actual market debut, they had pointed to positive sentiment around the issue.

Company background and use of proceeds

Part of the Anand Rathi Group, the company is engaged in stock broking, wealth management, investment banking, commodity broking, and capital market lending. Its wealth management arm, Anand Rathi Wealth, went public in 2021 and has delivered solid returns since.

From the IPO proceeds, the company plans to allocate Rs 550 crore towards funding long-term working capital requirements, while the remaining funds will be used for general corporate purposes.

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