Anand Rathi's ₹745 Crore IPO: DRHP Refiled with SEBI for Upcoming Public Offering

Anand Rathi Group has taken a significant step in its growth journey by resubmitting its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This move aims to secure over ₹745 crore through an Initial Public Offering (IPO). Initially filed in December 2024, the updated DRHP reflects the company’s ambition to enhance its financial standing and expand its operational capabilities.

Key Details of the IPO

The upcoming IPO, featuring a face value of ₹5, will consist entirely of a fresh share issue amounting to ₹745 crore. The company is also considering a Pre-IPO placement of up to ₹149 crore, which, if executed, will reduce the total amount raised through the fresh issue.

Allocation of Funds:
- Up to ₹550 crore will be directed towards long-term working capital and general corporate needs.
Offer Structure:
- The IPO will be executed via a book-building process.
- 50% of the net issue will be reserved for qualified institutional buyers.
- Non-institutional investors will receive 15%, while retail individual investors will get 35% of the net offer.
- Special allocations will also be available for eligible employees.

Lead Managers and Listing

The book-running lead managers for this IPO include Nuvama Wealth Management Limited, DAM Capital Advisors Limited, and Anand Rathi Advisors Limited, with MUFG Intime India Private Limited acting as the registrar. Following the IPO, the equity shares are set to be listed on the National Stock Exchange of India Limited and BSE Limited.

About Anand Rathi Share and Stock Brokers

Anand Rathi Share and Stock Brokers Ltd is recognized for offering a comprehensive suite of financial services, including broking, margin trading, and financial product distribution, under the well-known brand name, Anand Rathi. The firm caters to a broad clientele, encompassing retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.

As of September 30, 2024, Anand Rathi operates a robust network of 90 branches across 54 cities in India, supported by 1,123 Authorized Persons in 333 cities. The company’s digital platforms ensure that it effectively serves clients in Tier 1, Tier 2, Tier 3, and other regions, highlighting its extensive market reach.

Financial Performance Insights

In fiscal 2024, Anand Rathi witnessed remarkable growth, with revenue from operations surging by 45.74% to ₹681.79 crore, up from ₹467.83 crore in the previous fiscal year. This growth is largely attributed to an increase in interest income and fees. The company’s profit after tax also saw a substantial rise, jumping 104.77% from ₹37.74 crore in fiscal 2023 to ₹77.29 crore in fiscal 2024.

For the first half of the year ending September 30, 2024, the company reported revenue from operations of ₹441.72 crore, alongside a profit after tax of ₹63.66 crore.

In summary, Anand Rathi Group’s strategic move to refile its DRHP underscores its commitment to growth and innovation in the financial services sector, setting the stage for a promising IPO.