Anand Rathi Share & Stock Brokers Ltd is launching its Initial Public Offering (IPO) to raise capital primarily for funding long-term working capital requirements. The IPO comprises a fresh issue of 1.80 crore shares worth Rs. 745 crore.
The Anand Rathi Share & Stock Brokers Ltd IPO opens on September 23, 2025, and closes on September 25, 2025, with shares set to be listed on NSE and BSE on Tuesday, September 30, 2025. Here’s a complete overview of the issue.
Anand Rathi Share & Stock Brokers Ltd’s IPO is priced between Rs. 393 and Rs. 414 per share with a lot size of 36 shares. Retail investment is Rs. 14,904 (36 shares at the upper price). For sNII, the investment is 14 lots (504 shares) totaling Rs. 2,08,656, and for bNII, 68 lots (2,488 shares) totaling Rs. 10,13,472.
GMP of Anand Rathi Share & Stock Brokers Ltd IPO
As of September 22, 2025, the shares of Anand Rathi Share & Stock Brokers Limited in the grey market were trading at a 6.52 percent premium. The shares in the Grey Market traded at Rs. 441. This gives it a premium of Rs. 27 per share over the cap price of Rs. 414.
Overview of Anand Rathi Share & Stock Brokers Limited
Anand Rathi is a full-service brokerage house in India with over 30 years of experience, serving retail, high net worth, ultra-high net worth individuals, and institutions. The company provides investment solutions across equities, derivatives, commodities, and currency markets, with a focus on clients above 30 years of age, who make up 84.36% of active clients as of March 31, 2025. Its long-standing track record and diverse client base position it for sustained growth in the financial services sector.
The company offers comprehensive financial services, including broking across multiple asset classes, margin trading facilities that allow clients to leverage eligible collateral for equity cash delivery trades, and distribution of third-party investment products such as mutual funds, AIFs, fixed deposits, bonds, and portfolio management services. These services are delivered through branches, authorized agents, and digital platforms to meet the needs of a varied clientele.
As of March 31, 2025, Anand Rathi operated 90 branches across 54 cities, had 1,125 Authorized Persons in 290 cities, and provided services through online and digital platforms. The company employed 2,082 permanent staff and maintained a pan-India presence that enabled it to serve clients across Tier 1, Tier 2, Tier 3, and other cities efficiently.
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Promoters of Anand Rathi Share & Stock Brokers Limited
The company is promoted by Anand Nandkishore Rathi, Pradeep Navratan Gupta, Priti Pradeep Gupta, and Anand Rathi Financial Services Limited, who provide strategic direction and governance to support the company’s growth and operations.
Lead Managers of Anand Rathi Share & Stock Brokers Limited IPO
Nuvama Wealth Management Limited, DAM Capital Advisors Limited and Anand Rathi Advisors Limited are the book-running lead managers for the IPO. MUFG Intime India Private Limited is the registrar handling the offer process.
Objectives of the IPO Offer
Anand Rathi Share & Stock Brokers Limited plans to use the net proceeds from its IPO for two primary purposes. Approximately Rs. 550 crore will be allocated to meet long-term working capital requirements, while the remaining funds will be used for general corporate purposes to support operational needs and overall business growth.
Financial Analysis of Anand Rathi Share & Stock Brokers Limited
Anand Rathi Share & Stock Brokers Limited’s revenue from operations has increased from Rs. 681.79 crore in FY24 to Rs. 845.7 crore in FY25, which represents a growth of 24 percent. The net profit has increased by 34 percent, from Rs. 77.29 crore in FY24 to Rs. 103.61 crore in FY25.
The basic earnings per share increased by 22.75 percent and stood at Rs. 23.36 in FY25 as against Rs. 19.03 recorded in FY24.
In terms of return ratios, the company reports a Return on Capital Employed (ROCE) of 21.32 percent and a Return on Net Worth (RoNW) of 23.12 percent. The company has a debt-to-equity ratio of 1.80x.
Anand Rathi Share & Stock Brokers Limited Vs Peers
Anand Rathi Share & Stock Brokers Limited reported an EPS of Rs. 23.36 and a RoNW of 23.12 percent. In comparison, Motilal Oswal Financial Services’s EPS of Rs. 41.83 and its RoNW of 25.21 percent. IIFL Capital Services Limited reported Rs. 23.06 EPS, and a RoNW of 33.17 percent.
Anand Rathi Share & Stock Brokers Limited’s net asset value per share is Rs. 113.57, compared to Rs. 44.57 for Geojit Financial Services Limited and Rs. 624.53 for Angel One
Limited.
Strengths of Anand Rathi Share & Stock Brokers Limited
- The company has the highest Average Revenue Per Client (ARPC) within its peer group.
- The company leverages its Margin Trading Facility (MTF) business strategically to boost its Average Revenue Per Client (ARPC).
- A full-service brokerage firm generating revenue from multiple diversified sources.
- Nationwide presence complemented by strong digital capabilities to attract and serve clients effectively.
- Proven history of robust financial performance and steady growth.
Weaknesses of Anand Rathi Share & Stock Brokers Limited
- Some NCDs issued by the company exceeded the 200-holder limit, and the matter is under review by the RoC, with outcomes or penalties remaining uncertain.
- The company has received a SEBI notice regarding the ‘fit and proper’ criteria under SEBI (Intermediaries) Regulations, 2008, and any adverse outcome could materially affect its business and financials.
- The company received a SEBI show-cause notice on September 15, 2025, regarding an inspection of its cyber security and technical framework, and any adverse outcome could harm its reputation and financial condition.
- Anand Rathi Commodities Limited (ARCL) and some of its directors have been charge-sheeted under various laws, and any adverse outcome could harm the Anand Rathi group’s reputation and materially impact our business.
- We operate under extensive regulatory requirements, and any non-compliance or changes in laws could lead to action by authorities, materially affecting our business and financial condition.
- Our Broking Segment and MTF Business generate a significant portion of revenue, and any decline in these areas could materially impact our business, operations, cash flows, and financial condition.
Conclusion
Anand Rathi Share & Stock Brokers Limited combines over 30 years of experience with a diversified business model and strong pan-India presence. Its robust financial performance and strategic MTF operations drive high client revenue, while regulatory and compliance risks are actively managed.
The IPO will strengthen capital for long-term growth and operational expansion. The IPO presents promising long-term prospects, though investors should consider the associated risks before participating.
Written By Akshay Sanghavi
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