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Anand Rathi Share IPO
Anand Rathi Share & Stock Brokers Ltd
₹14,148 /36 sharesMinimum Investment
Anand Rathi Share IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 23 Sep ‘25 - 25 Sep ‘25 | ₹14,148 | 36 | ₹393 - ₹414 |
| Issue Size | IPO Doc |
|---|---|
| 745.00Cr | RHP PDF |
About Anand Rathi Share
Founded in
1991
Managing director
Mr Pradeep Navratan Gupta
Parent organisation
Anand Rathi Share & Stock Brokers Ltd
Strengths & Financials of Anand Rathi Share
Strengths
Risks
Anand Rathi Share and Stock Brokers claims to have the highest average revenue per client (ARPC) among its peer set in FY24, with ARPC of Rs 30,922, compared to Rs 26,012 in FY23 and Rs 26,386 in FY22. The company attributes this high ARPC to the long-standing relationship with clients, the age profile of its client base, and a personalised client management approach. As of September 30, 2024, 84.86 percent of its active clients were above 30 years of age, and a majority had a client vintage of more than three years, indicating client stickiness and engagement. The company claims that this demographic typically has a higher investible corpus and seeks multiple investment products, which contributes to the company’s higher revenue per client and its focus on relationship-based broking.
Anand Rathi Share and Stock Brokers claims to use its margin trading facility (MTF) as a key component of its investment solutions, enabling clients to leverage their investments. Its MTF book grew from Rs 304.66 crore in FY22 to Rs 376.64 crore in FY23, Rs 617.29 crore in FY24, and Rs 771.47 crore as of September 30, 2024, representing a CAGR of 42.34 percent. The company claims that clients using MTF generate substantially higher revenue per client and that it has maintained zero non-performing assets on this facility over the past three fiscal years and the six months ended September 30, 2024.
The company claims to have diversified revenue streams across broking and non-broking services, including distribution of mutual funds, portfolio management services, alternative investment funds, and margin trading.
Anand Rathi Share and Stock Brokers claims to have a broad presence across India, supported by both physical and digital channels. As of September 30, 2024, the company operated 90 branches in 54 cities and had 1,123 authorised persons across 333 cities. In addition, its proprietary digital platforms, including web and mobile applications, allow client acquisition and servicing in locations without physical presence and enable relationship managers to automate processes such as onboarding, report generation, and trade execution. This multi-channel approach claims to provide access to clients across Tier 1, Tier 2, Tier 3, and other cities.
The company has witnessed a consistent increase in revenue from operations. It increased from Rs 423.36 crore in FY22 to Rs 467.83 crore in FY23 and Rs 681.79 crore in FY24.
The company derives a significant portion of its revenue from its broking segment. It accounted for Rs 290.48 crore (65.76 percent) of the company’s revenue in the period ended September 30, 2024, Rs 457.81 crore (67.15 percent) in FY24, Rs 317.27 crore (67.82 percent) in FY23, and Rs 306.10 crore (72.30 percent) in FY22. Brokerage income is highly dependent on trading volumes, investor participation, regulatory restrictions, and market conditions. Any adverse impact on this segment could significantly affect the company’s operations and financial condition.
One of the group companies, Anand Rathi Commodities Limited (ARCL), along with promoter Pradeep Navratan Gupta, has been accused under the Prevention of Money Laundering Act, 2002, in connection with alleged irregularities at NSEL. The Directorate of Enforcement filed a supplementary complaint in January 2025, and the matter is pending before the City Civil Court and Additional Sessions Judge, Greater Bombay. Any adverse outcome could result in penal action against Gupta and significantly harm the reputation of the Anand Rathi group, thereby adversely impacting the company’s business and financial condition.
Anand Rathi Commodities Limited’s (ARCL) application for registration as a commodity derivatives broker was rejected by SEBI in November 2022, and it was barred from making a fresh application for six months or until acquittal in the NSEL-related chargesheet, whichever was earlier. ARCL has challenged this order before the Securities Appellate Tribunal, and the matter remains pending. Any adverse outcome in these proceedings could impact the reputation of the Anand Rathi group and, in turn, affect the company’s business and financial standing.
The company derives a substantial portion of its revenue from authorised persons. They accounted for Rs 118.09 crore (26.73 percent) of the company’s revenue in the period ended September 30, 2024, Rs 188.50 crore (27.65 percent) in FY24, Rs 138.55 crore (29.62 percent) in FY23, and Rs 117.56 crore (27.77 percent) in FY22. A loss of a significant number of such agents or a failure to expand its network of authorised persons could adversely affect the company’s business and financial standing.
The company is exposed to credit risk from clients, counterparties, clearing houses, and other intermediaries in its broking and margin funding operations. As of September 30, 2024, the company had trade receivables of Rs 269.12 crore, a slight increase from Rs 247.59 crore in FY24, Rs 205.10 crore in FY23, and Rs 142.99 crore in FY22. Any default by clients or inadequacy of collateral in volatile markets could lead to significant financial losses, increased non-performing assets, and a negative impact on the company’s financial condition.
The company’s financial performance is exposed to fluctuations in interest rates, which are influenced by factors such as RBI policies, inflation, and global economic conditions. As of September 30, 2024, 65.67 percent of its debt carried floating rates, increasing vulnerability to rising interest costs. Furthermore, the company’s finance costs increased from Rs 37.30 crore (8.81 percent) of its revenue in FY22 to Rs 49.46 crore (10.57 percent) in FY23, Rs 96.54 crore (14.16 percent) in FY24, and Rs 64.95 crore (14.70 percent) in the period ending September 30, 2024, reflecting a higher interest burden. An inability to effectively manage these risks may compress margins and reduce its profitability in financing products.
The company operates in a human resource-intensive industry with 1,985 permanent employees as of September 30, 2024. Employee benefits expense accounted for Rs 137.97 crore (31.23 percent) of the company’s revenue in the period ended September 30, 2024, Rs 214.82 crore (31.51 percent) in FY24, Rs 169.10 crore (36.15 percent) in FY23, and Rs 144.47 crore (34.13 percent) in FY22. Any sudden increase in these expenses may adversely impact the company’s profitability.
The company faces high employee attrition, with a rate of 21.41 percent in the period ended September 30, 2024, and 45.54 percent in FY24, 42.24 percent in FY23, and 38.00 percent in FY22. Such high turnover may disrupt operations, increase hiring and training costs, and affect service quality, which could in turn adversely impact the company’s business performance.
As of September 30, 2024, the company had contingent liabilities amounting to Rs 378.57 crore. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition.
The company recorded negative cash flow from operating activities amounting to Rs 16.66 crore in FY22. This was primarily due to lower profit before tax and a significant increase in loans granted, partially offset by an increase in trade payables. Additionally, negative cash flow from investing activities amounted to Rs 584.54 crore in the period ended September 30, 2024, Rs 599.25 crore in FY24, Rs 136.66 crore in FY23, and Rs 78.92 crore in FY22. Any recurrence of negative cash flows may adversely impact the company’s liquidity, growth prospects, and financial condition.
Anand Rathi Share Financials
*All values are in Rs. Cr
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Application Details of Anand Rathi Share IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹393 - 414 | ₹2 Lakh |
| Employee | ₹368 - 389 | ₹2 Lakh |
| High Networth Individual | ₹393 - 414 | ₹2 - 5 Lakh |
For Anand Rathi Share IPO, eligible investors can apply as Regular & Employee.