Momentum Builds: Anand Rathi Share and Stock Brokers IPO Sees 75 Percent Subscription on Day Two

Image Source : Moneycontrol

The initial public offering of Anand Rathi Share and Stock Brokers Ltd has garnered significant investor interest, with the issue subscribed 75 percent by the end of Day 2, September 24, 2025. The IPO, which opened on September 23, aims to raise Rs 450 crore through a fresh issue and offer for sale, and is being closely watched by market participants for its potential to unlock value in India’s fast-evolving capital markets ecosystem.

Backed by the Anand Rathi Group, the brokerage firm is positioning itself as a full-service player with strong retail and institutional coverage, digital platforms, and a growing footprint in wealth management and advisory services.

Key Highlights From The Subscription Update

- IPO subscribed 75 percent on Day 2, with strong interest from retail and HNI segments
- Qualified Institutional Buyers (QIBs) expected to drive momentum on Day 3
- Price band set at Rs 265 to Rs 280 per share, with a lot size of 50 shares
- Issue comprises fresh equity worth Rs 200 crore and an offer for sale of Rs 250 crore
- Listing expected on NSE and BSE by October 1, 2025

Business Profile And Financials

Anand Rathi Share and Stock Brokers operates across equity broking, commodity trading, depository services, and investment advisory. The company has over 1.2 million active clients and a pan-India presence through 450 branches and franchisee outlets.

Financial performance for FY25 includes:

- Revenue of Rs 680 crore, up 18 percent year-on-year
- Net profit of Rs 112 crore, with a margin of 16.5 percent
- Return on equity of 21 percent and debt-free balance sheet
- Strong growth in digital onboarding and mobile trading volumes

The company plans to use IPO proceeds to enhance technology infrastructure, expand branch network, and invest in client acquisition.

Market Position And Competitive Landscape

Anand Rathi competes with established players such as Angel One, Motilal Oswal, and ICICI Securities. Its edge lies in a hybrid model that combines digital platforms with personalized advisory, catering to both urban and semi-urban investors.

Strategic strengths include:

- Integrated wealth management and broking services
- Proprietary research and model portfolios for retail clients
- AI-based advisory tools and robo-investing features
- Strong brand recall in Tier II and Tier III cities

The IPO is seen as a move to consolidate market share and prepare for future product diversification, including insurance distribution and fintech partnerships.

Investor Sentiment And Valuation Metrics

The IPO has received a mixed response from analysts, with some highlighting its reasonable valuation and growth potential, while others caution about cyclicality in broking revenues and regulatory risks.

Valuation snapshot:

- Price-to-earnings ratio of 22x based on FY25 earnings
- Price-to-book ratio of 4.1x
- Market cap expected to be Rs 2,240 crore post listing
- Dividend payout policy remains conservative, with reinvestment focus

Retail investors are advised to consider the company’s fundamentals, growth visibility, and competitive positioning before applying.

Should You Apply?

The IPO offers exposure to India’s expanding retail investment landscape and digital broking boom. While the subscription momentum is encouraging, investors should weigh the following:

- Strength of financials and brand equity
- Risks from market volatility and regulatory changes
- Long-term potential in wealth and advisory segments
- Peer comparison and listing premium expectations

Sources: Moneycontrol IPO Tracker, Economic Times Markets, Anand Rathi Group Investor Presentation, BSE Corporate Filings.