- By Aditya Pratap Singh
- Tue, 21 Jan 2025 09:01 AM (IST)
- Source:JND
SEBI returned the draft IPO documents of Anand Rathi Group's brokerage arm Anand Rathi Securities and Stock Brokers, which proposed to raise Rs 745 crore through an initial public offering. Anand Rathi filed the documents for the fresh issue of shares. According to the draft red herring prospectus (DRHP), the offer also includes reservations for eligible employee subscriptions.
The company also plans to raise Rs 149 crore through a pre-IPO placement. If the allotment is completed, the size of the issue will be reduced. In mid-December, the company had filed a DRHP application with SEBI, seeking approval to raise Rs 745 crore through an initial public offering (IPO).
A month later, on January 17, the offer document was returned without any reason, the update showed. According to the draft documents, the Rs 550 crore proceeds from the IPO are proposed to be used for the company's long-term working capital requirements and general corporate purposes.
Anand Rathi Share and Stock Brokers Limited offers a wide range of financial services, including broking, margin trading and distribution of financial products under the brand name 'Anand Rathi'.
Across its diverse clientele, the company serves retail investors, high-net-worth individuals (HNIs), ultra-HNIs and institutional clients.
While its customer base spans a diverse age group, 1.46 lakh of its active customers - representing 85 per cent of its total customers - were above the age of 30 as on September 30, 2024.
As of September 2024, Anand Rathi Stocks and Stock Brokers operates through a strong network of 90 branches across 54 cities in India, supported by 1,123 Authorised Persons (Agents authorised by the respective stock exchanges) across 333 cities.
Financially, revenue from operations increased by 46 per cent to Rs. 682 crore in FY24 from Rs. 468 crore in FY23. Profit after tax increased 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 was Rs. 441.72 crore and profit after tax was Rs. 63.66 crore.
Nuwama Wealth Management, DAM Capital Advisors and Anand Rathi Advisors are the lead managers running these books. The shares are proposed to be listed on the National Stock Exchange of India Limited and the BSE.
(With Inputs From PTI)