Anand Rathi Share IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

Incorporated in 1991, Anand Rathi Share and Stock Brokers Limited is a full-service broking company and part of the Anand Rathi Group, a diversified financial services platform. With more than three decades of experience, the company has built a strong presence in equity, derivatives, commodities, and currency markets, catering to a wide spectrum of clients including retail, HNI, UHNI, and institutions.

As of March 31, 2025, the company operates through 90 branches, 1,125 authorized agents across 290 cities, and robust digital platforms, ensuring reach across Tier 1, Tier 2, and Tier 3 locations. It has significant 84.36% of its active client base is aged above 30 years.

The company’s service suite includes broking services, margin trading facilities, and distribution of third-party investment products such as mutual funds, AIFs, fixed deposits, bonds, and PMS. The margin trading facility book has grown at a CAGR of 34.91% between FY23 and FY25, underscoring strong traction in leveraged products. In addition, its broking arm is backed by a 59-member research team delivering fundamental and technical insights, thematic stock baskets, and structured ideas to support client decision-making.

IPO Details:

Objects of the Issue

• Funding long-term working capital requirements of the Company
• The remaining amount of the Net Proceeds will be used for general corporate purposes

Key Strengths

Highest Average Revenue per Client (ARPC) Among Peers

According to the CARE Report, the company recorded the highest ARPC within its peer group in Fiscal 2025. The ARPC stood at ₹29,347 in FY25, ₹30,922 in FY24, and ₹26,012 in FY23, highlighting its ability to generate superior client-level profitability compared to competitors.

Strategic Leverage of Margin Trading Facility (MTF)

The MTF segment forms a vital component of the company’s product suite, contributing significantly to its elevated ARPC levels. Clients utilizing MTF generate meaningfully higher revenues compared to non-MTF clients. The MTF book expanded at a robust CAGR of 34.91%, rising from ₹3,766.38 million as of March 31, 2023, to ₹6,855.13 million as of March 31, 2025. Notably, the company has consistently maintained zero NPAs in the MTF business across FY23–FY25.

Pan-India Network with Strong Digital Integration

The company operates on a multi-channel model, combining a physical presence of 90 branches across 54 cities and 1,125 Authorised Persons in 290 cities with comprehensive online and digital platforms, ensuring wide client reach across geographies.

Consistent Growth in Financial Performance

The company has demonstrated robust financial performance with revenue from operations growing at a CAGR of 34.45% from ₹4,678.26 million in FY23 to ₹8,456.98 million in FY25. Over the same period, PAT increased at a CAGR of 65.68%, from ₹377.45 million to ₹1,036.06 million, underscoring operational efficiency and strong profitability.

Risks

Regulatory and Legal Risks

The company, along with its promoters, is involved in multiple significant legal and regulatory proceedings. Any adverse outcome in these matters may materially impact its business operations, financial condition, and reputation.

Financial Snapshot

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Conclusion

Anand Rathi Share and Stock Brokers Limited brings with it over three decades of industry experience, a strong brand under the Anand Rathi group, and a well-established pan-India distribution network supported by digital platforms. The company has demonstrated rapid growth in recent years, with its financial metrics showing consistent improvement and profitability scaling at a healthy pace. At the upper price band, the issue is valued at a post-listing P/E of around 25x, which appears reasonable given its growth trajectory and peer positioning.

While the company’s fundamentals remain sound, it operates in a highly regulated industry where any policy or regulatory shift could directly impact trading volumes, thereby influencing revenue and profitability. Nonetheless, with its strong business model, differentiated offerings, and sustained financial performance, the IPO offers a decent opportunity. Considering the balance between growth visibility and regulatory risks, we recommend subscribing to the issue for listing gains.