Anand Rathi Group’s brokerage arm, Anand Rathi Share and Stock Brokers has filed draft papers with capital markets regulator Sebi to raise ₹745 crore through an Initial Public Offering (IPO).

The proposed IPO consists entirely of a fresh issue of shares worth up to ₹745 crore, with reservations included for subscriptions by eligible employees, as stated in the Draft Red Herring Prospectus (DRHP).

Since the IPO is entirely an Offer For Sale (OFS), the company will not receive any funds from the issue and the proceeds will go to the selling shareholder. The company may raise ₹149 crore through a pre-IPO placement. If the placement is completed, the issue size will be reduced.

According to the draft papers filed on Saturday (December 14, 2024), ₹550 crore of the IPO proceeds will be allocated to fund the company’s long-term working capital requirements and for general corporate purposes.

Anand Rathi Share and Stock Brokers Ltd, operating under the brand name ‘Anand Rathi,’ offers a wide range of financial services, including broking, margin trading, and the distribution of financial products. The company caters to a diverse clientele comprising retail investors, High-Net-worth Individuals (HNIs), ultra-HNIs, and institutional clients.

While its client base spans various age groups, 1.46 lakh of its active clients — representing 85% of the total, were over 30 years old as of September 30, 2024. As of September 2024, Anand Rathi Share and Stock Brokers operate through a robust network of 90 branches across 54 cities in India, supported by 1,123 Authorized Persons (agents approved by relevant stock exchanges) in 333 cities.

On the financial front, revenue from operations increased by 46% to ₹682 crore in fiscal 2024, from ₹468 crore in fiscal 2023. Profit after tax surged from ₹37.74 crore in fiscal 2023, to ₹77.29 crore in fiscal 2024. For the six months ended September 30, 2024, revenue from operations stood at ₹441.72 crore, and profit after tax stood at ₹63.66 crore.

Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors are serving as the book-running lead managers for the IPO. The shares are proposed to be listed on the National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange (BSE).