Anand Rathi to launch ₹1000 cr IPO, First Brokerage firm in 2 Decades

Anand Rathi, a leading Mumbai-based brokerage firm, is reportedly preparing for an initial public offering (IPO) with a potential size ranging from ₹800 to ₹1,000 crore, according to sources. Founded in 1994, Anand Rathi Financial Services Limited offers a range of financial services, including wealth management, investment banking, corporate finance, brokerage, and advisory services. Its clientele includes institutions, corporations, high-net-worth individuals (HNIs), and families, with offerings in equities, commodities, mutual funds, insurance, corporate deposits, bonds, and loans.

This will be the first major brokerage firm to launch an IPO since Angel One Limited's public listing in September 2020, where it raised ₹600 crore. The IPO follows Anand Rathi’s wealth management arm going public in 2021. The upcoming IPO will consist of both primary and secondary share sales, with some existing investors planning to sell part of their holdings. The fresh capital raised will be used to expand the company’s broking business, particularly in areas like technology and lending.

Anand Rathi has not commented on the IPO plans. The decision to go public comes at a time when Indian stock markets are performing strongly, buoyed by robust domestic capital flows in both institutional and retail sectors, despite global economic uncertainties.

India’s key indices, Sensex and Nifty, have risen by 17% this year. Additionally, India recently overtook China in terms of the highest weightage in the MSCI Emerging Market Investable Market Index. New investors are also entering the stock market, with the total number of demat accounts crossing 170 million in August, up by over four million from July.

In FY 2023, Anand Rathi Financial Services reported consolidated revenue of ₹1,465.89 crore, up from ₹1,160 crore in FY 2022, according to filings with the Registrar of Companies. The company’s profit increased to ₹708.56 crore in FY23, compared to ₹583.77 crore the previous fiscal year.

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