₹745 Crore IPO by Anand Rathi Share & Stock Brokers – Details, Profitability & Peer Comparison
Anand Rathi Share & Stock Brokers is set to raise ₹745 crore via fresh-issue IPO priced at ₹393-414/share. With FY25 revenue ₹8,456.98 million, PAT ₹1,036.06 million and strong margins & ROE, check full financials, peer comparison & risks before you invest.
Company Background
Anand Rathi Share & Stock Brokers Limited is the brokerage and stock broking arm of the Anand Rathi Group, which has been operating in financial services for over three decades. It offers a full suite of services including equity & derivatives trading, margin trading facilities, commodities, financial product distribution, wealth advisory, etc. The firm serves retail, HNI (High Net Worth Individuals), institutional clients, and has a strong brand reputation.
Founded many years ago (1990s), the company has built up its presence via both physical branches and digital platforms. With India’s capital markets expanding, brokerage houses are playing an increasingly important role, and Anand Rathi is trying to capitalize on that growth.
IPO Details
| Item | Details |
|---|---|
| IPO Size | ₹ 745 crore (fresh issue) |
| Price Band | ₹ 393 – ₹ 414 per equity share |
| Issue Type | Book-built fresh issue (no OFS component reported) |
| Subscription Period | Opens: September 23, 2025; Closes: September 25, 2025 |
| Lot Size (Retail) | 36 shares (minimum) amounting to ~₹14,904 at upper band. |
| Listing Date (Tentative) | September 30, 2025 on NSE & BSE |
| Registrar & Lead Manager | Lead Manager: Nuvama Wealth Management Limited. Registrar: MUFG Intime India Private Limited. |
Company Financials
Here are the key financial figures for Anand Rathi Share & Stock Brokers for the past few years:
| Metric | FY 2022-23 | FY 2023-24 | FY 2024-25 |
|---|---|---|---|
| Revenue from Operations | ₹ 4,678.26 million | ₹ 6,817.88 million | ₹ 8,456.98 million |
| Profit After Tax (PAT) | ₹ 377.45 million | ₹ 772.90 million | ₹ 1,036.06 million |
| EBITDA | ₹ 1,150.67 million | ₹ 2,305.84 million | ₹ 3,112.67 million |
| EBITDA Margin | ~ 24.60% | ~ 33.82% | ~ 36.81% |
| PAT Margin | ~ 8.05% | ~ 11.31% | ~ 12.23% |
| Return on Capital Employed (RoCE) | ~ 16.72% | ~ 21.48% | ~ 21.32% |
Peer Comparison
To assess valuation and competitiveness, here’s how Anand Rathi stacks up against peer brokerage / financial services companies in India (in terms of growth, margins, valuation etc.):
| Peer | Key Metrics / Strengths | Comparison Notes Relative to Anand Rathi |
|---|---|---|
| Motilal Oswal Financial Services | Large diversified financial services group, strong brand, robust wealth management & broking business. | Motilal Oswal tends to have larger scale, broader product mix. Anand Rathi has strong margins but lesser scale compared to very large peers. |
| IIFL (Capital Services, Wealth) | Similarly strong across wealth, broking, distribution; strong client base. | IIFL’s ROE and growth are comparable; valuation multiples may differ due to scale and risk profiles. |
| Angel One | Very strong in discount broking, high customer base, digital platform strength. | Anand Rathi’s strengths include higher ARPC (average revenue per client), more premium full-service offering; but competition from cheaper brokers is a risk. |
| Other regional/full-service brokers | Varying profitability, often lower margins, or more dependence on market cycles or client acquisition costs. | Anand Rathi appears to be ahead on margin expansion, and improving profitability metrics over recent years. |
Strengths & Risks
Strengths:
- Strong profitability metrics: Growing PAT, improving margins (PAT margin ~12.23% in FY25), RoCE ~21-22%.
- Fresh issue of ₹745 crore means capital infusion for expansion / working capital without promoter dilution.
- Long standing brand in broking/advisory; diversified revenue streams (broking, financial products distribution, margin funding etc.) which helps reduce dependence on a single revenue source.
- Strong returns on capital metrics, improving margin profile.
Risks:
- Cyclicality of broking business: dependent on market volumes, investor sentiment; in low volatility markets, revenues might come under pressure.
- Competition from discount brokers / fintech platforms which may drive down margins or force pricing competition.
- Regulatory risk: financial market regulations, margin requirement changes etc. can affect operations.
- Concentration risk: if a large share of revenue comes from certain products or clients, losses / disruptions there could hit results.
- Valuation may appear rich depending on market’s view, especially given strong growth expectations already built-in.
6. Conclusion
Anand Rathi Share & Stock Brokers IPO is a compelling opportunity for investors looking for exposure to India’s growing capital markets and brokerage sector. With its ₹745 crore fresh issue, strong financial performance in FY25 (notable revenue & profit growth, good margins, strong RoCE and ROE), and a well-established brand, the company appears well-positioned.
However, investors should enter with realistic expectations: while the financials are strong, price band is not cheap, and market conditions will play a big role in post-listing performance. For those who believe in longer term returns and structural growth in retail broking / investment advisory, this IPO may offer decent upside. Those seeking short-term gains should monitor subscription response, grey market premium, and valuation closely.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
