Anand Rathi Share IPO Day 1 Issue Subscribed 10% in Early Hours. Check GMP, Other Key Details; Should You Bid?

Anand Rathi Share IPO subscribed 10% on Day 1. Check GMP, pricing, benefits, and key details before deciding to bid.

Ellofacts Ellofacts
Sep 23, 2025 - 12:01
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Anand Rathi Share IPO Day 1 Issue Subscribed 10% in Early Hours. Check GMP, Other Key Details; Should You Bid?

Introduction

The much-anticipated Initial Public Offering (IPO) of Anand Rathi Share and Stock Brokers opened on September 23, 2025, aiming to raise ₹745 crore through a fresh issue of equity shares. The issue received a 10% subscription within the first few hours, indicating a moderate investor interest. This article delves into the key details of the IPO, including the Grey Market Premium (GMP), pricing, potential benefits, and considerations for prospective investors.

IPO Subscription Status

As of the opening day, the IPO has been subscribed 10% overall. The retail portion has received 12% subscription, while the Non-Institutional Investors (NII) segment is at 11%. The Qualified Institutional Buyers (QIB) portion has yet to witness significant bidding

Grey Market Premium (GMP)

The Anand Rathi IPO is trading at a Grey Market Premium of ₹31, suggesting an estimated listing price of ₹445 per share, approximately 7.5% higher than the upper end of the issue price band of ₹414  This indicates a positive market sentiment, though it's essential to note that GMP can fluctuate and may not always reflect the actual listing price.

IPO Pricing and Lot Size

  • Price Band: ₹393 to ₹414 per equity share

  • Lot Size: 36 shares

  • Minimum Investment: ₹14,118 (36 shares × ₹393)

  • Maximum Investment: ₹1,41,180 (360 shares × ₹393)

Financial Performance

In FY25, Anand Rathi Share and Stock Brokers reported a revenue of ₹845.70 crore, a significant increase from ₹467.83 crore in FY23, reflecting a compound annual growth rate (CAGR) of 34.45%. The profit after tax surged from ₹37.75 crore to ₹103.61 crore during the same period, achieving a CAGR of 65.68% 

Use of IPO Proceeds

The company intends to utilize the net proceeds of the IPO for:

  • Business Expansion: Enhancing its presence in Tier II and III cities.

  • Working Capital Requirements: Supporting day-to-day operations.

  • General Corporate Purposes: Strengthening the capital base.

Key Advantages

  • Established Brand: Anand Rathi is a well-known name in the financial services sector.

  • Strong Financials: Consistent growth in revenue and profitability.

  • Diversified Client Base: Serving retail, HNI, and institutional clients across India.

Potential Drawbacks

  • Regulatory Risks: The brokerage industry is highly regulated, and any adverse changes could impact operations.

  • Market Volatility: Fluctuations in the financial markets can affect business performance.

  • Competitive Landscape: Intense competition from other established players in the industry.

Conclusion

The Anand Rathi Share IPO presents an opportunity to invest in a well-established financial services firm with strong growth prospects. While the initial subscription and GMP indicate positive investor sentiment, potential investors should consider the associated risks and conduct thorough due diligence before bidding. The IPO closes on September 25, 2025, with a tentative listing date of September 30, 2025.

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