Anand Rathi Shares & Stock Brokers Limited – IPO Reviews 2025, Analysis and Notes

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Key Highlights

Company Background:

Anand Rathi Shares and Stock Brokers Limited, incorporated in 1991 and renamed in 2008, is a leading full-service brokerage house in India. The company offers stock broking, margin trading, and distribution of investment products across equities, derivatives, commodities, and currencies. With 90 branches in 54 cities, over 1,100 authorised persons, and strong digital platforms, it serves retail, HNI, UHNI, and institutional clients. Backed by promoters Anand Rathi, Pradeep Gupta, Priti Gupta, and Anand Rathi Financial Services, it has built a strong brand in wealth creation. Over three decades, it has diversified into commodity broking, algorithmic trading, and portfolio management, earning industry recognition and SEBI qualifications as a leading stockbroker.

Market Opportunity:

India’s broking industry presents a significant growth opportunity, with the market valued at ~₹520 billion in FY25 and projected to reach ₹810 billion by FY28, growing at a CAGR of 16–18%. Retail participation is surging, with NSE active clients rising to 47.9 million in Q1FY26, a CAGR of 32.8% since FY20 . Despite this progress, only 4–5% of India’s population currently invests in equities, compared to 55% in the US and 13% in China, highlighting vast untapped potential . Rising financial literacy, increasing allocation of household savings to equities and mutual funds and penetration into Tier 2 and Tier 3 cities are further expanding the addressable market . Supported by favorable demographics, technology adoption, and regulatory reforms, the sector is positioned for sustained growth.

Key Strengths:

Company key strengths lie in its established brand, strong multi-channel presence, and diversified offerings across broking, margin trading, and distribution of investment products. With 90 branches in 54 cities, over 1,100 authorised persons, and advanced digital platforms, it effectively caters to both offline and online investors. The company enjoys a loyal client base of retail, HNI, UHNI, and institutional customers, supported by a long track record of over three decades in capital markets. Its promoter-backed pedigree, professional management, and focus on risk management further enhance credibility. Additionally, its ability to cross-sell value-added services such as algorithmic trading, portfolio management, and wealth advisory strengthens client stickiness and drives higher revenue per customer

Key Strategies:

It is led by experienced promoters from a family of generational jewelers, including Chairman Chetan N Thadeshwar, who has over 40 years of industry experience, complemented by a professional management team. The company ensures high product quality through a rigorous control and assurance process, with checks at every manufacturing stage using advanced equipment like XRF machines. As a key growth strategy, the company continues to invest in marketing and brand-building initiatives to enhance its market presence.

Financials:

Over FY23–FY25, company has shown robust revenue growth from Rs 467.82 crore in FY23 to Rs 845.69 in FY25, showing 34.5% CAGR growth. In the same time period, helped it to grow its EBITDA and PAT at 64.4%/65.3% CAGR to Rs 311.26/103.60 crore from Rs 115/37.7 crore.

Valuation:

At the upper price band, company is valued at FY25 P/E of 25x which is reasonable for company which has been able to capitalize strong sector tailwinds. Hence, we recommend a Subscribe rating for this IPO.

Key Risks:

The company’s revenue is highly dependent on capital market performance, making it vulnerable to downturns that reduce trading volumes. Intense competition from low-cost discount brokers and fintech platforms continually pressures profitability and margins. The business is also exposed to adverse regulatory changes affecting compliance, brokerage fees, and capital norms. Finally, its deep reliance on technology platforms creates a constant vulnerability to cybersecurity threats and system disruptions.

Issue Highlights

Offer Structure

Lead Book Running Managers

• Nuvama Wealth Management Ltd.

• Dam Capital Advisors Ltd.

• Anand Rathi Advisors Ltd.

Registrar to the Offer

• MUFG Intime India Pvt. Ltd.

Research Analyst

Rajan Gupta
📧 rajan.gupta1@religare.com

Research Team

• Ajit Mishra – ajit.mishra@religare.com

• Abhijeet Banerjee – abhijeet.banerjee@religare.com

• Gaurav Sharma – gauravsharma2@religare.com

• Ashwani Harit – ashwani.harit@religare.com

• Divya Parmar – divya.parmar@religare.com

• Vinay Kalani – vinay.kalani1@religare.com

• Rajan Gupta – rajan.gupta1@religare.com

• Author: Religare Broking
• Last Updated: September 22, 2025