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Total Issue Size
Fresh Issue + Offer For Sale
Fresh Issue (FI)
Proceeds go to the company
Offer For Sale (OFS)
Proceeds go to the existing investors
Funding long term working capital
The large majority of the fresh proceeds funds the company's long term working capital. A broker that runs a margin trading book has to fund client positions from its own balance sheet, so a bigger capital base is what allows that book, and the interest income it earns, to grow.
General corporate purposes
The balance of the fresh proceeds is set aside for general corporate purposes, at the discretion of management and within the limits permitted by regulation.
(₹ in Crore)
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Anand Rathi Share and Stock Brokers Limited is a Mumbai based full service stockbroker and part of the wider Anand Rathi group. It was incorporated in 1991 and has been in the market for more than three decades. Its core business is broking across equities, derivatives, commodities and currencies, and around that it runs a margin trading facility, meaning it lends against securities so clients can take larger positions than their own cash allows. Alongside broking it distributes financial products, including mutual funds, alternative investment funds, bonds, fixed deposits and portfolio management services. Distribution is a deliberate second leg: it earns fees that do not depend on how many times a client trades, and it has been growing faster than the broking line. The firm reaches its customers through roughly 90 branches and a network of more than a thousand authorised persons spread across several hundred cities, and it also has a presence in the GIFT City international financial centre, which gives it a route to offshore investors. It positions itself at the full service end of the market rather than competing on price. Its clients skew toward higher value relationships, and it reports the highest average revenue per client among the brokers it compares itself against, with a majority of clients having stayed for more than three years. That is the opposite of the discount broking model that has taken most of the industry's new account growth, and it is the central bet of the business: that advice and relationship depth can hold clients who would otherwise pay far less elsewhere. Earnings remain tied to market activity, since both brokerage income and the margin book expand and contract with trading volumes.
The day before the issue opened, on 22 September 2025, the company allotted 53,26,086 equity shares to anchor investors at the upper band price of Rs 414 per share, raising about Rs 220.50 crore. The book was taken up largely by domestic institutions, including HDFC Mutual Fund, Kotak Mahindra, Quant Mutual Fund, Aditya Birla Sun Life, SBI Life Insurance, Kotak Mahindra Life Insurance, Bandhan, ITI Mutual Fund, Singularity and 360 ONE, alongside foreign participants such as Morgan Stanley, Pinebridge and BNP Paribas.
Source: RHP • Analysis provided for informational purposes
Last Updated: 13 July 2026, 5:30 AM
Highest revenue per client among its peers
The company earns more per client than any of the brokers it benchmarks against. That is the whole point of the full service model: fewer, deeper relationships rather than a large base of low value accounts.
Clients who stay
A clear majority of its clients have been with the firm for more than three years, and the base skews toward older, more established investors. Long tenure lowers the cost of replacing churned accounts and makes revenue more predictable.
A growing margin trading book
The margin trading facility has compounded quickly and has been running without bad loans against it. It earns interest income that is separate from brokerage, and funding it further is what most of the fresh issue is for.
Income beyond broking
Distribution of mutual funds, alternative funds, bonds and portfolio management has been growing faster than the broking line. That reduces, though it does not remove, the dependence on how often clients trade.
Wide physical network
Around 90 branches and over a thousand authorised persons give it reach into several hundred cities. For an advice led model, a local presence is still how many clients are won.
Strong recent growth
Revenue rose to Rs 847 crore in FY25 from Rs 468.70 crore two years earlier, and profit after tax nearly tripled over the same span to Rs 103.61 crore.
Access to the offshore market
A presence at the GIFT City international financial centre gives it a route to non resident and global investors that most mid sized domestic brokers do not have.
Serious outstanding legal proceedings
A number of criminal proceedings are pending against the company, its promoters and its directors. A special court has ordered summons against the corporate promoter and two directors in connection with the National Spot Exchange matter, and a group company and some of its directors have been charge sheeted. This is the single item a prospective investor should read the prospectus on directly.
A group company was refused a broking registration
The regulator rejected a group company's application to register as a commodity derivatives broker in 2022 and barred it from reapplying for a period. Regulatory standing of that kind bears on the whole group's ability to operate.
Earnings rise and fall with the market
Both brokerage income and the margin book depend on trading volumes and investor participation. A quiet or falling market cuts revenue directly, and the same conditions that reduce trading also shrink the lending book.
Anand Rathi Share and Stock Brokers Ltd
Express Zone, A Wing, 10th Floor, Western Express Highway, Goregaon (East), Mumbai, Maharashtra, 400063, India
View on Maps →MUFG Intime India Private Limited
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Discount brokers are taking the growth
Zero commission and low cost platforms have captured most of the industry's new accounts, and the company's share of active clients on the exchange has been slipping. Holding clients who could pay far less elsewhere depends entirely on the advice being worth the difference.
Regulation is squeezing the model
Changes to transaction fee rules and tighter margin requirements have eroded some of the economics that full service brokers relied on, and regulatory pressure on derivatives volumes has weighed on the whole sector's revenue.
Margins trail the peer group
Profit after tax was about 12 percent of revenue in FY25, well below what the larger listed brokers earn. The company is smaller and its cost base, particularly employee costs, absorbs a large share of income.
High employee turnover
Attrition has run high in recent periods. In a business where the relationship often sits with the adviser rather than the firm, losing staff can mean losing the clients they served.
Concentrated ownership and group dealings
The promoter group held over 98 percent before the issue, and there are extensive transactions between group entities. Both warrant scrutiny of how decisions get made and on what terms.