Anand Rathi Share Makes Strong Debut with 5.41% Premium, Lists at ₹436.40 Against Solid Subscription

Anand Rathi Share and Stock Brokers Limited, the full-service broking company offering equity, derivatives, commodities, and currency market services, made a positive debut on BSE and NSE on September 30, 2025. After closing its IPO bidding between September 23-25, 2025, the company commenced trading with a 4.37% premium opening at ₹432.10 and rose to ₹436.40 with gains of 5.41%.

Anand Rathi Share Listing Details

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Anand Rathi Share and Stock Brokers Limited launched its IPO at ₹414 per share with a minimum investment of 36 shares costing ₹14,904. The IPO received a solid response with a subscription of 21.83 times - retail investors at moderate 5.11 times, NII at strong 30.16 times, and QIB at impressive 46.25 times.

First-Day Trading Performance Outlook

Listing Price: Anand Rathi Share price opened at ₹432.10, representing a premium of 4.37% from the issue price of ₹414, and rose to ₹436.40, delivering gains of 5.41% for investor,s reflecting positive market sentiment towards the broking sector.

Growth Drivers and Challenges

Growth Drivers:

• Highest ARPC Among Peers: Leading average revenue per client among peer se,t driven by strategic use of margin trading facility business, demonstrating superior monetisation capabilities and client engagement across diversified revenue streams.
• Pan-India Distribution Network: Extensive reach through 90 branches, 1,125 authorised agents across 290 cities serving Tier 1, Tier 2, and Tier 3 markets, combined with robust digital platforms enabling efficient client acquisition and servicing.

Challenges:

• Aggressive Valuation Metrics: Post-issue P/E of 25.06x and price-to-book value of 4.68x reflecting premium valuation in the highly competitive and fragmented broking segment, requiring a sustained growth trajectory to justify pricing.
• High Financial Leverage: Elevated debt-to-equity ratio of 1.80, indicating substantial borrowings primarily for margin trading facility business,s requiring careful risk management and potential strain on capital structure.

Utilisation of IPO Proceeds

• Working Capital Requirements: ₹550.00 crore for funding long-term working capital requirements supporting margin trading facility expansion, business growth, and operational scale-up across broking and distribution businesses.
• General Corporate Purposes: Supporting business operations, strategic initiatives, technology investments, and expansion activities for sustained growth in the competitive full-service broking segment.

• Financial Performance of Anand Rathi Share

• Revenue: ₹847.00 crore for FY25, showing impressive growth of 24% from ₹683.26 crore in FY24, reflecting strong market traction and successful scaling across broking and distribution businesses.
• Net Profit: ₹103.61 crore in FY25, representing a remarkable growth of 34% from ₹77.29 crore in FY24, indicating substantial operational leverage and margin expansion benefits from diversified revenue streams.
• Financial Metrics: Healthy ROE of 23.12%, solid ROCE of 21.32%, elevated debt-to-equity ratio of 1.80, healthy PAT margin of 12.23%, impressive EBITDA margin of 36.81%, and estimated market capitalisation of ₹2,737.33 crore.