Anand Rathi Group's brokerage arm, Anand Rathi Share and Stock Brokers, has filed draft papers with capital markets regulator Sebi to raise Rs 745 crore through an initial public offering (IPO).
The proposed IPO is entirely a fresh issue of shares of up to Rs 745 crore. The offer includes reservations for subscriptions by eligible employees, according to the draft red herring prospectus (DRHP).
The proceeds from the fresh issue, to the extent of Rs 550 crore, will be used to fund the company's long-term working capital requirements and general corporate purposes.
The company may raise Rs 149 crore through a pre-IPO placement. If the placement is completed, the issue size will be reduced.
Going by the draft papers filed on Saturday, proceeds of the IPO to the tune of Rs 550 crore will be used to fund its long-term working capital requirements of the company and general corporate purposes.
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Anand Rathi Share and Stock Brokers Ltd provides a wide range of financial services, including broking, margin trading, and distribution of financial products, under the brand name 'Anand Rathi.' Catering to a diverse clientele, the company serves retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.
While its client base spans various age groups, 1.46 lakh of its active clients — representing 85 per cent of the total, were over 30 years old as of September 30, 2024.
As of September 2024, Anand Rathi Share and Stock Brokers operates through a robust network of 90 branches across 54 cities in India, supported by 1,123 Authorized Persons (agents approved by relevant stock exchanges) in 333 cities.
On the financial front, revenue from operations increased by 46 per cent to Rs 682 crore in fiscal 2024, from Rs 468 crore in fiscal 2023. Profit after tax surged from Rs 37.74 crore in fiscal 2023, to Rs 77.29 crore in fiscal 2024.
For the six months ended September 30, 2024, revenue from operations stood at Rs 441.72 crore, and profit after tax stood at Rs 63.66 crore.
Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors are the book-running lead managers. The shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE.
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