Anand Rathi Share and Stock Brokers (ARSSBL), a well-established name in the Indian financial services sector, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise to INR 745 crore through a fresh issue of equity shares. The IPO will be a completely fresh issue, reflecting the company’s intent to deploy the proceeds towards business expansion.
Anand Rathi Share Brokers: Issue Details
- Issue Size: INR 745 crore via fresh issue
- Promoters: Anand Nandkishore Rathi, Pradeep Navratan Gupta, Priti Pradeep Gupta, and Anand Rathi Financial Services
- Listing On: BSE and NSE
- Book Running Lead Managers (BRLMs):
- Nuvama Wealth Management Limited
- DAM Capital Advisors Limited
- Anand Rathi Advisors Limited
- Registrar to the Issue: MUFG Intime India Private Limited
- Utilisation of Proceeds:
- Long-term working capital requirements – INR 550 crore
- The remaining balance will be used for General corporate purposes
Anand Rathi Share Brokers: Business Overview
The company has been around for over three decades. It’s a full-service brokerage house with a strong reputation in India. Anand Rathi offers a wide range of investment and trading services across equities, derivatives, commodities and currencies. That means retail investors, high-net-worth individuals, ultra-high-net-worth individuals and institutions all get the same level of service.
As of 30 September, ARSSBL had 90 branches across 54 cities. It also had a network of 1,123 authorised persons working in 333 cities. That’s backed by a robust digital infrastructure. Clients can use platforms like Trade Mobi, AR Invest, MF Client and Trade Xpress to manage their investments. The company has an international presence through its GIFT subsidiary, catering to NRIs and offshore investors. What sets ARSSBL apart is its focus on giving clients the advice and support they need. Strong research capabilities and a client-centric approach have consistently boosted client engagement and satisfaction.
Anand Rathi Share Brokers: Financial Performance
Between fiscal year 2022 and fiscal year 2024, Anand Rathi Share and Stock Brokers has shown robust financial growth:
- Revenue from operations grew at a CAGR of 26.90%, reaching INR 681.79 crore in FY 2024
- Profit after tax increased at a CAGR of 23.35%, rising from INR 50.8 crore to INR 77.29 crore
- EBITDA margin improved to 33.82% in FY 2024
- As of 30 September 2024, revenue for H1 FY 2025 stood at INR 441.72 crore and PAT at INR 63.66 crore
- In Fiscal 2024, Anand Rathi Share and Stock Brokers earned INR 681.79 crore in operational revenue, with 67.15% from broking services, 19.41% from non-broking segments like margin trading and distribution, and 13.44% from other operational income.
- Anand Rathi’s Margin Trading Facility (MTF) book reached INR 771.47 crore as of 30 September 2024, growing at a strong CAGR of 42.34% since FY 2022. Clients using MTF generated significantly higher revenue per client, with the company maintaining zero NPAs throughout.
Anand Rathi Share Brokers: Client Base & ARPC Leadership
Anand Rathi Share and Stock Brokers has a large and loyal client base, which is a reflection of its deep-rooted relationships and trust in the investment community. As of 30th September 2024, the company had 8.52 lakh total clients, out of which 1.72 lakh were active revenue-generating clients. Interestingly, 84.86% of these active clients were above 30 years of age – a demographic known for higher investible surplus and a preference for comprehensive financial services. 60.06% of the active clients have been with the company for more than 3 years – a clear indication of long-term client stickiness.
ARSSBL has the highest Average Revenue Per Client (ARPC) among its peer group, with ARPC of INR 30,922 in FY 2024, up from INR 26,012 in FY 2023 and INR 26,386 in FY 2022. This leadership in ARPC is due to the company’s focus on mature high-value clients, advisory driven model and wide range of customized investment solutions. The company’s ability to generate more revenue per client is a testimony to its relationship-based broking model and focus on long-term wealth creation for clients.
Anand Rathi Share Brokers: Conclusion
Anand Rathi Share and Stock Brokers is positioning itself as a strong, tech-enabled, full-service brokerage house with a robust and growing client base. With strong financials, high ARPC, diversified revenue streams, and a well-established brand, the upcoming IPO is likely to garner substantial interest from institutional and retail investors alike.
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