Anand Rathi Share & Stock Brokers IPO opens with modest GMP. Do you have to bid?

Anand Rathi Share and Stock Brokers, part of the Anand Rathi Group, opened its RS 745 Crore IPO on Tuesday. The problem is completely a fresh stock sales and costs in the band of RS 393–414 per share. At the top of the band, the market capitalization of the brokerage is estimated at approximately RS 2,596 Crore.

The company has set the party size at 36 shares, for which a minimal investment of RS 14,904 is required for retail investors. Up to 50% of the net problem is reserved for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors.

Anand Rathi part IPO GMP

According to Market Observers, the shares of the company are traded at a GMP of about 7% on the issue price, which suggests that muted but positive list expectations. Although GMPs are only an indicator, they point to an advantage in the short term for investors.

Company profile

With more than three decades of experience, Anand Rathi Share is a full-service brokerage that works on shares, derivatives, raw materials and currencies, as well as margin-trading facilities (MTF) and distribution of financial products.

From March 2025 it served more than 2.2 Lakh active customers throughout India, supported by 90 branches in 54 cities and a network of 1,125 authorized persons in 290 cities.

The company also offers digital trading platforms, including Trade Mobi, AR Invest, MF Client and Trade Xpress, who have supported its digital strategy for the acquisition of customers.

Financial

The company has brought strong financial growth in recent years. Turnover increased with a CAGR of 34% between FY23 and FY25 and reached RS 846 Crore. EBITDA and Pat grew even faster clips of 65% and 66% CAGR during the same period in the same period. The profit after tax was on RS 104 Crore in FY25, compared to RS 38 crore in FY23.Bitda -Marges improved from 24.6% in FY23 to 36.8% in FY25, while pat -margins expanded from 8.1% to 12.3%. The return on equity rose to 23.1% in FY25. The company also enjoys one of the highest average income per customer (ARPC) in the Makelindustrie, helped by its MTF activities, which grew with a CAGR from 35% to RS 686 Crore between FY23 and FY25.

Use of yields

The net revenue of the issue will mainly be used to finance long-term requirements for working capital (RS 550 Crore) and for general business purposes. The promoter shareholder shift drops from 98.1% pre-published to 69.9% after the edition.

Appreciation and recommendation

At the upper price band of RS 414, the IPO is valued on a p/e of 25.1x on FY25 income. “The diversified income flows of the company, the strong brand, the healthy financial growth and the stickiness with high customer make it a” long -term subscription, “said SBI Securities.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)