Sebi Returns Anand Rathi IPO Papers: Rs 745 Crore Share Sale

New Delhi, Jan 20 (PTI) Sebi has returned the draft IPO documents of Anand Rathi Group's brokerage arm Anand Rathi Share and Stock Brokers, which proposed to raise Rs 745 crore through an initial share-sale, an update with the regulator showed on Monday.

Anand Rathi had filed the papers for issuing fresh equity. The offer also included reservations for subscriptions by eligible employees, according to the draft red herring prospectus (DRHP).

Also, the company planned to mobilise Rs 149 crore through a pre-IPO placement. If the placement is completed, the issue size will be reduced.

The firm filed DRHP with Sebi in mid-December seeking its approval to mop-up Rs 745 crore through an initial public offering (IPO).

After a month, the offer document was returned on January 17 without specifying any reason, the update showed.

As per the draft papers, proceeds of the IPO to the tune of Rs 550 crore were proposed to be used to fund the company's long-term working capital requirements and general corporate purposes.

Anand Rathi Share and Stock Brokers Ltd provides a wide range of financial services, including broking, margin trading, and distribution of financial products, under the brand name 'Anand Rathi'.

Catering to a diverse clientele, the company serves retail investors, high-net-worth individuals (HNIs), ultra-HNIs, and institutional clients.

While its client base spans various age groups, 1.46 lakh of its active clients -- representing 85 per cent of the total -- were over 30 years old as of September 30, 2024.

As of September 2024, Anand Rathi Share and Stock Brokers operates through a robust network of 90 branches across 54 cities in India, supported by 1,123 authorised persons (agents approved by relevant stock exchanges) in 333 cities.

On the financial front, revenue from operations increased 46 per cent to Rs 682 crore in FY24, from Rs 468 crore in FY23. Profit after tax surged from Rs 37.74 crore in FY23, to Rs 77.29 crore in FY24.

For the six months ended September 30, 2024, revenue from operations stood at Rs 441.72 crore, and profit after tax stood at Rs 63.66 crore.

Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors are the book-running lead managers. The shares are proposed to be listed on the National Stock Exchange of India Ltd, and the BSE.