Anand Rathi Share IPO

Anand Rathi Share and Stock Brokers Limited, incorporated in 1991, is a full-service broking company and part of the Anand Rathi Group, which offers a wide range of financial services. The company provides broking services, margin trading, and financial product distribution under the Anand Rathi brand. It caters to retail clients, high net worth and ultra-high net worth individuals, as well as institutional clients, offering access to equity, derivatives, commodities, and currency markets. With over three decades of experience, the company has built a strong reputation and is strategically positioned for future growth. As of March 31, 2025, 84.36 percent of its active client base was over 30 years old, reflecting a mature and potentially stable customer segment.

The company operates through a widespread network of 90 branches and 1,125 authorized agents across 290 cities, in addition to its digital platforms. This enables it to serve clients in Tier 1, Tier 2, and Tier 3 cities across India. Its offerings include margin trading facilities that allow clients to leverage eligible collateral for equity trades, based on exchange-defined margin requirements. In addition to broking services, the company distributes third-party financial products such as mutual funds, alternative investment funds, fixed deposits, bonds, and portfolio management services through both digital platforms and relationship managers. As of March 31, 2025, the company employed 2,082 permanent staff members.

Anand Rathi Share IPO Strengths

• A wholly-owned subsidiary of Anand Rathi Financial Services Limited, benefiting from the larger group’s resources and brand reputation in wealth and insurance services.
• Offers comprehensive brokerage services across equity, derivatives, commodities, currencies, along with margin trading and investment product distribution such as mutual funds and portfolio management.
• Operates through 90 branches and 1,125 authorized agents spanning 290+ cities, supported by strong digital platforms serving tier 1 to tier 3 cities, maximizing market penetration.
• Achieves among the highest average revenue per client (ARPC) in India, reflecting strong client engagement and monetization capabilities.
• Serves diverse investor segments with emphasis on cash delivery and intraday trading, providing a balanced revenue stream less vulnerable to market fluctuations.
• Combines traditional branch and authorized agent networks with modern online platforms to cater to different client preferences and enhance customer reach.

Anand Rathi Share IPO Risks

• The company’s revenue, heavily reliant on brokerage and margin trading facilities (MTF), is sensitive to market conditions and investor sentiment, making earnings volatile during downturns.
• Faces strong competition from discount brokers like Zerodha, Groww, and Upstox that attract retail clients with low-cost models, potentially impacting client acquisition and retention.
• Evolving SEBI regulations on margin funding, transaction charges, and distribution fees can affect revenue and operational flexibility.
• While MTF generates higher revenue per client, it exposes the company to credit risk if clients default and liquidity risk during market stress.
• Significant working capital is tied up in receivables, margin funding loans, and bank balances; delays in collections or inability to raise debt may impact liquidity.
• The company, promoters, and directors face multiple ongoing litigations including criminal cases and financial claims, posing reputational and financial risks.
• Focused on affluent and mass-affluent investors whose trading activity may be less during market downturns, affecting revenue stability.