Anand Rathi targets ₹1,000 crore IPO: First brokerage firm to go public since 2020

Anand Rathi Financial Services is preparing for an initial public offering (IPO) aiming to raise ₹800-1,000 crore. This IPO marks the first major brokerage to go public since Angel One's ₹600 crore IPO in 2020. With a strong financial performance and a growing Indian stock market, Anand Rathi's move is highly anticipated, especially among those seeking to invest in IPO opportunities.

IPO details and investor potential

The Anand Rathi IPO will involve a mix of primary and secondary share sales. Existing investors will divest part of their holdings, and the company will raise fresh capital. The new funds will be used to expand its broking services, including investments in technology and lending activities. This capital infusion is expected to strengthen the firm’s operations, positioning it well for growth.

Investors who plan to invest in IPO offerings may find Anand Rathi’s public offering particularly attractive, given its comprehensive portfolio of services, including wealth management, corporate finance, investment banking, brokerage, and advisory services. The firm serves a diverse clientele, ranging from high-net-worth individuals (HNIs) to institutions, and is present across 1,200 locations in India and international markets like Dubai.

Performance driving the IPO

Founded in 1994, Anand Rathi has consistently delivered solid financial results, which will likely appeal to those looking to invest in IPO shares. In FY23, the company reported consolidated revenue of ₹1,465.89 crore, a significant increase from ₹1,160 crore in FY22. Its profit also rose to ₹708.56 crore in FY23 from ₹583.77 crore in the previous year, showcasing strong profitability.

This IPO follows the 2021 listing of its wealth management arm, Anand Rathi Wealth, which further expanded its brand's market reach and credibility. The brokerage's wide range of services, along with its continuous growth, makes this a promising opportunity for investors seeking to diversify their portfolios.

Why investors should consider the IPO?

The timing of Anand Rathi's IPO comes as the Indian stock market continues to reach new heights despite global macroeconomic uncertainties. India’s benchmark indices, the Sensex and Nifty, have risen by 17% in 2024, and retail investor participation has surged. In August alone, the number of demat accounts in India crossed 170 million, up by over four million compared to July. This growing investor base creates a strong environment for IPOs, with heightened demand for new offerings.

For potential investors, the Anand Rathi IPO presents a unique opportunity to tap into India’s booming financial market. With a solid track record, experienced management, and a clear strategy for growth, this IPO could yield promising returns for those looking to invest in IPO shares.

Invest safely

Anand Rathi’s upcoming ₹1,000 crore IPO comes at an opportune time as the Indian stock market continues its upward trajectory. For investors looking to invest in IPO shares with strong growth potential, Anand Rathi’s offering is worth considering. With its robust financial performance, comprehensive service offerings, and expansion plans, the company is well-positioned for future success.