About Anand Rathi Share & Stock Brokers Limited – Mainboard IPO
Anand Rathi Share & Stock Brokers Limited is a full-service broking and financial products distributor headquartered in Mumbai, serving retail, HNI, and institutional clients across India. The company has about 90 branches and 1,100 agents in 290 cities, offering services such as equity broking, margin trading, algorithmic trading, distribution of mutual funds, insurance, and bonds. With roots in Mumbai, Anand Rathi is well-known for its physical and digital brokerage presence and personalized client service, blending dealer touch with digital platforms.
READ FULL DRHP HERE: SEBI|DRHP| ANAND RATHI|
IPO Details
| Key Points | Information |
|---|---|
| IPO Price Band | ₹393 – ₹414 per share |
| Minimum Lot Size | 36 shares (about ₹14,904 at highest price) |
| Issue Size | ₹745 crore (100% fresh issue, 1.80 crore shares) |
| Face Value | ₹5 per share |
| Stock Exchanges | BSE and NSE (Mainboard IPO) |
| Registrar | MUFG Intime India Private Limited CLICK HERE |
| Book-running Managers | Nuvama Wealth Management Limited |
| Offer Structure | QIB – up to 50%, Retail – up to 35%, NII – up to 15% |
IPO Timeline (Important Dates)
| Event | Date |
|---|---|
| IPO Opens | 23rd September 2025 |
| IPO Closes | 25th September 2025 |
| Allotment Date | 26th September 2025 |
| Refunds/Unsuccessful Bids | 29th September 2025 |
| Shares in Demat Account | 29th September 2025 |
| Listing Date | 30th September 2025 |
What Is the Money Used For?
- The funds raised will be used mainly for:
- Funding long-term working capital needs (₹550 crore)
- General corporate purposes (balance proceeds)
Key Financials (as per RHP and Public Prospectus)
| Financial Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 467.83 | 681.79 | 845.70 |
| EBITDA | 115.19 | 180.23 | 311.10 |
| EBITDA Margin (%) | 24.6% | 26.4% | 36.8% |
| Profit After Tax (PAT) | 38.11 | 67.12 | 104.00 |
| PAT Margin (%) | 8.1% | 9.8% | 12.3% |
| Return on Net Worth (RoNW) | 15.02% | 19.54% | 25.45% |
| Debt to Equity Ratio | 0.18 | 0.15 | 0.08 |
| Basic EPS (₹) | 8.88 | 15.43 | 23.26 |
| Market Cap (at upper band) | – | – | ₹2,595 crore |
| Price/Earnings (P/E) | – | – | 17.79x |
Explanation of Financial Terms
- Revenue: Total income from broking and other services
- EBITDA: Operating profit before interest and taxes
- PAT: Net profit after all expenses and tax
- Margins: Profit ratios as a percentage of revenue
- RoNW: Return on net worth (shareholder’s money)
- Debt to Equity: Lower values mean lower risk
- EPS & P/E: Profit per share and market valuation
Analysis
- Revenue rose by 80% from ₹467 crore in FY23 to ₹845 crore in FY25 – indicating strong growth.
- EBITDA margins climbed from 24.6% to 36.8% on improved operational efficiency and scale.
- PAT tripled over two years, margin improved to 12.3% in FY25.
- RoNW is robust at 25.45%, and debt-equity ratio dropped, showing a healthier balance sheet.
- Average revenue per client highest among major peers in FY24; broking accounts for 60% of revenue.
Why Some Investors Like This Mainboard IPO
- Trusted brand with strong branch network and personalized service.
- Rapid financial growth and rising profitability with low leverage.
- Proceeds support future business expansion and solvency.
- Mainboard listing gives broader access and liquidity.
Points That Need Caution
- Still more dealer-driven than tech—only 37% clients trade via web/app, slower shift compared to digital-only brokers.
- The market is highly competitive, with aggressive pricing from new-age brokers.
- Business exposed to swings in investor sentiment and trading volumes.
- Treasury profits contribute significantly; less diversified than larger integrated players.
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.