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By Nitin Negandhi
Anand Rathi Share & Stock Brokers Ltd.
Anand Rathi Share and Stock Brokers Ltd. (ARSSBL), the Mumbai-based stockbroker promoted in 1991, is raising Rs.745 crore from its maiden Initial Public Offering (IPO) on 23rd September 2025 at an upper price band of Rs.414 per share by way of a fresh issue of 1.8 crore shares. The IPO proceeds will be used to part finance its long-term working capital requirements.
The company provides broking services, funds margin trading activities, and distributes various financial service products of the Anand Rathi Group through its extensive distribution network. It has reported an impressive CAGR of 34% in total income between 2023 and 2025 while net profit surged 65% during the same period. The broking services industry is supported by rising retail participation, rapid digital adoption, and growing financial literacy.
ARSSBL has a very high asset base—four times its total income. More than 65% of its total assets of Rs.3,365 crore are placed with various banks. Like other players in the industry, the company must maintain client margin money accounts in separate bank accounts, resulting in a large balance sheet size. For comparison, Angel One, with an asset base of nearly Rs.17,000 crore, has an asset-to-income ratio of 3.22 times.
Anand Rathi Wealth Ltd. (ARW), another listed group company, entered the capital market in December 2021 through an Offer for Sale of over Rs.650 crore at Rs.550 per share. ARW has delivered compounded returns of over 10 times since listing, after adjusting for the 1:1 bonus issue in May 2025.
Peer Comparison:
At the upper price band of Rs.414, the issue is valued at a P/E ratio of 19 times, which is slightly above the industry average of 16 times. Industry leaders like Motilal Oswal and Angel One are around 10 times larger than ARSSBL and trade at P/E multiples of 23 and 18 times respectively. While the broking industry is expected to sustain a healthy growth rate of around 16% over the next 2–3 years, it faces potential challenges from new entrants such as Jio Finance. Protecting margins will be critical for ARSSBL to maintain its current valuation levels of around 20 times earnings.
Fit and Proper Person – Key Risk Factor:
The company received a SEBI notice in June 2023 seeking a compliance report regarding the ‘fit and proper’ person criteria. The notice is linked to a chargesheet dated 2nd December 2022 filed by the Economic Offences Wing, Mumbai, against Pradeep Navratan Gupta, Individual Promoter and Chairman & Managing Director, in connection with alleged irregularities at National Spot Exchange Limited.
The High Court judgment, initially expected on 15th September 2025, is now likely in early October 2025. Any adverse outcome may require Pradeep Navratan Gupta to resign, which could negatively impact the company’s strong brand image and investor confidence.
| Name of the Company | Anand Rathi Stock Brokers | |
| Issue Open | 23-09-2025 | |
| Issue closes | 25-09-2025 | |
| Issue Size | ||
| Fresh Issue | Rs. in crore | 745 |
| Face Value per share | Rs | 5 |
| Upper issue price band | Rs | 414 |
Financial Performance: (Rs. in crore)
| Particulars | Mar-25 | Mar-24 | Mar-23 | CAGR (%) |
| Total Income | 847 | 683 | 467 | 34.4% |
| Net Profit | 104 | 77 | 38 | 65.4% |
| Peer Comparison | Anand Rathi Stock Brokers | Motilal Oswal | IIFL Capital Services | Geojit | Angel One | ||
| Total income | Rs. in crore | 847 | 8,417 | 2,567 | 749 | 5,248 | |
| EPS | Rs. | 22 | 41 | 22 | 6 | 127 | |
| Book value | Rs. | 114 | 186 | 81 | 45 | 625 | |
| P/e ratio | No of times | 19 | 23 | 13 | 13 | 18 | |
| Average industry’s PE ratio | No of times | 16 | |||||
| Face Value | Rs. | 5 | 1 | 2 | 1 | 10 | |
| Current market price (19th Sept 2025) | Rs | 414 – upper price band | 945 | 287 | 77 | 2266 |
The company’s Grey Market Premium (GMP) has declined from a high of Rs.70 to the current Rs.40. Anand Rathi is a reputed name in the financial services space, particularly in broking and investment. While Anand Rathi Share and Stock Brokers Ltd. (ARSSBL) may not necessarily replicate the performance of Anand Rathi Wealth Ltd. on the bourses, the stock is expected to deliver decent returns over the long term.
Disclaimer
The writer is not a SEBI registered analyst. He and his friends and relatives may or may not participate in the IPO. Investors should consult their financial advisor before investing. Grey market premium is just an indicator and should not be relied upon.
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