Anand Rathi Brokerage Launches Rs 745 Crore IPO, Riding on Wealth Arm's Success
Anand Rathi Share and Stock Brokers has announced its Initial Public Offering (IPO) valued at Rs 745 crore, with a price range of Rs 393-414 per share. The brokerage arm reported strong financial performance with a 24% revenue growth to Rs 846.00 crore and a 34% increase in net profit to Rs 104.00 crore in FY25. The IPO funds will primarily be used for working capital requirements. The company's higher average revenue per customer, attributed to margin trading facilities and diversified revenue streams, sets it apart from peers. This IPO follows the success of the group's wealth management arm, which has delivered nearly 1,000% returns since its listing in December 2021.
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Anand Rathi Share and Stock Brokers, a prominent player in the Indian financial services sector, has announced the launch of its Initial Public Offering (IPO) valued at Rs 745 crore. The IPO is priced in the range of Rs 393-414 per share, marking a significant milestone for the company's growth strategy.
Wealth Management Arm's Stellar Performance
The IPO launch follows the remarkable success of the group's wealth management arm, Anand Rathi Wealth. Since its listing in December 2021, Anand Rathi Wealth has delivered an impressive return of nearly 1,000% to its investors. The company's market value has increased from Rs 2,300 crore at the time of listing to a substantial Rs 25,000 crore.
Strong Financial Growth
Anand Rathi Wealth has demonstrated robust financial performance:
- Revenue Growth: 37% Compound Annual Growth Rate (CAGR) from FY21 to FY25, reaching Rs 981.00 crore
- Assets Under Management (AUM): 30% CAGR expansion to Rs 77,103.00 crore
Brokerage Arm's Financial Highlights
The brokerage arm, which is now going public, has also shown strong financial metrics:
| Metric | FY25 Performance | Growth |
|---|---|---|
| Revenue | Rs 846.00 crore | 24% |
| Net Profit | Rs 104.00 crore | 34% |
| EBITDA Margin | 36.80% | - |
| PAT Margin | 12.20% | - |
IPO Details and Utilization of Funds
The Rs 745 crore IPO will allocate funds as follows:
- Rs 550.00 crore for working capital requirements
- The remainder for general corporate purposes
Analyst Perspectives
Financial analysts have noted that the brokerage arm is trading at 25 times its post-issue earnings. The company stands out among its peers due to its higher average revenue per customer, which is attributed to:
- Margin trading facilities
- Diversified revenue streams
The IPO of Anand Rathi Share and Stock Brokers comes at a time when the Indian stock market is seeing increased retail participation and growing interest in financial services. The success of its wealth management arm may provide a positive backdrop for this public offering, although investors should always conduct their own research and consider their risk appetite before making investment decisions.
As the IPO opens for subscription, market participants will be keenly watching to see if the brokerage arm can replicate the success story of its wealth management counterpart in the public markets.
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