The initial public offering of Anand Rathi Share and Stock Brokers got fully subscribed on its second day of public bidding (September 24). The Rs 745-crore IPO has been subscribed 111 percent so far.
The maiden public issue of the broking firm received bids for 1.48 crore shares, as against the offer size of 1.34 crore shares, according to data on NSE. Non Institutional Investors (NII) have subscribed their reserved portion by 188 percent. Retail investors, meanwhile, booked 137 percent of the portion kept for them. Qualified Institutional Buyers (QIB) have booked 2 percent of their reserved portion.
Anand Rathi Share and Stock Brokers IPO GMP:
Ahead of listing, the unlisted shares of Anand Rathi Share and Stock Brokers were trading with more than 8 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This is higher than the 6 percent GMP quoted by the site during the weekend, but lower than the 17 percent quoted last week.
According to IPO Watch, the unlisted shares of the company were trading with nearly 11 percent GMP over the IPO price.
Key details about Anand Rathi Share and Stock Brokers IPO:
The Mumbai-based stock broker launched its IPO to raise Rs 745 crore through an entirely fresh issue of shares at a price band of Rs 393-414 per share. Investors can bid for a minimum of 36 shares, requiring an investment of Rs 14,904, and in multiples thereafter.
The share allotments will likely be finalized by September 26, and the shares are scheduled to be listed on stock exchanges on September 30. Half of the public issue size is reserved for qualified institutional buyers, 35 percent for retail investors, and the remainder 15 percent for non-institutional investors.
The company plans to utilise Rs 550 crore of the net IPO proceeds mainly for its long-term working capital requirements, and will keep the remaining amount for general corporate purposes.
Anand Rathi Share and Stock Brokers IPO Anchor Book:
A day before the IPO opened for public bidding, Anand Rathi Share and Stock Brokers announced that it has raised Rs 220.5 crore from 15 anchor investors on September 22. HDFC Mutual Fund, Kotak Mahindra AMC, Quant Mutual Fund, Aditya Birla Sun Life AMC, SBI Life Insurance, and Singularity AMC were the largest investors among them, with each picking 4.85 lakh shares for Rs 20.08 crore.
Further, each of Morgan Stanley, Pinebridge Global Fund, Kotak Mahindra Life Insurance and 360 ONE bought 3.62 lakh shares worth Rs 15 crore of the company.
Should you apply?
BP Wealth advised investors to subscribe to the issue from a medium to long-term perspective. "On the upper price band, the company is currently valued at a P/E of 18.4x based on FY25 earnings, largely in line with listed peers. Driven by superior client monetisation, diversified revenues, robust margins, and scalable technology-led platforms, we believe that the company is well-positioned to capitalise on industry tailwinds and deliver sustainable growth," it said.
SBI Securities also advised investors to subscribe to the issue for the long term. "Backed by the strong Anand Rathi Group brand, ARSSBL stands out with one of the highest ARPCs in the industry. Supported by rising retail investor participation, its diversified business model, and robust client franchise, the company is well-positioned for sustained growth," it said.
Choice Broking advised investors to subscribe to the issue for the long term. It however highlighted that intense competition among discount and full-service brokers continues to pressure pricing and margins, and the 29 percent promoter pledge may weaken investor confidence, affect stability, and elevate operational and valuation risks.
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