Anand Rathi Financial Services Ltd has announced plans to raise between ₹800 crore and ₹1,000 crore through an initial public offering (IPO), aiming to capitalize on the strong interest in primary market investments. This IPO marks the first major public listing in the brokerage sector since Angel One Ltd went public in September 2020.
The upcoming IPO will include both primary and secondary share offerings. Existing investors are expected to partially liquidate their holdings, while the company seeks new capital to enhance its brokerage operations, particularly through investments in technology and lending.
Founded in 1994, Anand Rathi Financial Services provides a comprehensive range of financial services, including wealth management, investment banking, corporate finance, and advisory services. The firm also engages in brokerage and distribution activities across equities, commodities, mutual funds, structured products, insurance, corporate deposits, bonds, and loans, catering to institutions, corporations, high-net-worth individuals (HNIs), and families.
With a significant presence across India and in select international markets like Dubai, Anand Rathi operates through 1,200 locations, including its own branches, sub-brokers, and representative offices. While a spokesperson declined to comment on the IPO plans, the company is strategically positioning itself to benefit from a buoyant stock market.
The decision to pursue an IPO comes amid a strong performance in Indian stock markets, which have shown resilience despite global economic challenges. The benchmark indices, Sensex and Nifty, have risen by 17% so far this calendar year. Additionally, India recently surpassed China for the highest weightage in the MSCI Emerging Market Investable Market Index.
Interest in the stock market continues to grow, with data revealing that India’s total number of demat accounts, essential for trading stocks, has exceeded 170 million as of August—an increase of over four million since July.
Anand Rathi Financial Services reported consolidated revenue of ₹1,465.89 crore for the fiscal year 2023, up from ₹1,160 crore the previous year. The company’s profit for FY23 also rose to ₹708.56 crore, compared to ₹583.77 crore in the prior fiscal year, as per filings with the Registrar of Companies.
