Anand Rathi, a leading Mumbai-based broking firm, is planning to go public, people aware of the company’s intent told Moneycontrol. The size of the proposed initial public offering (IPO) of the broking firm could be in the range of Rs 800-Rs 1,000 crore.
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Established in 1994, Anand Rathi Financial Services Limited is a financial services firm offering various services such as wealth management, investment banking, corporate finance and advisory, brokerage and distribution services in equities, commodities, mutual funds, structured products, insurance, corporate deposits, bonds and loans to institutions, corporations, high-net worth individuals (HNIs) and families.
This will be the first major brokerage firm to go public since the IPO of Angel One Limited in September 2020 when the latter had raised Rs 600 crore. The IPO also follows the public debut of its wealth management arm, which went public in 2021.
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The proposed IPO will be a mix of primary and secondary share sales. Some existing investors of the firm are looking to liquidate part of their holding in the brokerage. The company is planning to raise fresh capital to fund the expansion of its broking business, including technology and lending, sources said.
The firm has a vast footprint across India and also in select international locations such as Dubai in the UAE. It is present across 1,200 locations through its own branches, sub-brokers and representative offices.
Anand Rathi declined to comment on its proposed IPO.
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The plan to go public comes on the back of a strong performance of Indian stock markets, despite global macroeconomic challenges, driven by surging domestic capital in both institutional and retail sectors.
India’s benchmark indices Sensex and Nifty are up 17 per cent to date during this calendar year. Earlier this month, India surpassed China to the highest weightage in the MSCI Emerging Market Investable Market Index for the first time.
New investors continue to flock to stock markets. Data shows that in August, India’s total demat accounts, which are used to trading stocks, have crossed 170 million, up by more than four million, as compared to July.
Anand Rathi Financial Services reported a consolidated revenue of Rs 1,465.89 crore in financial year (FY) 2023, as against Rs 1,160 crore in the previous fiscal, according to filings made with the Registrar of Companies (RoC). The company reported a profit of Rs 708.56 crore in FY23, as compared to a gain of Rs 583.77 crore during the corresponding period in the previous fiscal, the RoC filings showed.
