SEBI Returns Anand Rathi Share And Stock Brokers' Draft IPO Papers
The markets regulator returned the documents on Jan. 17, without stating any reason.
The Securities and Exchange Board of India on Monday returned the draft documents of Anand Rathi Share and Stock Brokers Ltd.'s public issue.
The Anand Rathi Group's brokerage arm planned to raise Rs 745 crore through the share of fresh issue, an update with the regulator showed on Monday.
While the company had filed the DRHP with SEBI in mid-December, the markets regulator had returned the documents after a month, on Jan. 17, without specifying any reason, the update showed.
The brokerage, which operates through a large network across India, was also eyeing a pre-IPO round to raise Rs 149 crore.
Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors are the book-running lead managers for the IPO.
On successful completion of the IPO, about Rs 550 crore would have been used as long-term working capital and for general corporate purposes. And, the company's shares would have listed on both the National Stock Exchange and BSE.
One-third of the issue also included reservations for eligible employees, according to the draft red herring prospectus.
The company also planned to mobilise Rs 149 crore through a pre-IPO placement. However, this would have reduced the total issue size.
Anand Rathi Share and Stock Brokers provides a wide range of financial services, including broking, margin trading, and distribution of financial products.
In addition to retail investors, the company's customers also include high-net-worth individuals, ultra-HNIs, and institutional clients.
While its client base spans various age groups, 1.46 lakh of its active clients—representing 85% of the total—were over 30 years old as of Sept. 30, 2024.
The firm, which operates through a robust network of 90 branches across 54 cities in India, has 1,123 authorised persons or agents spread across 333 cities.
The company’s revenue from operations jumped 46% to Rs 682 crore in the financial year 2023-24, against Rs 468 crore in FY23. Profit after tax surged from Rs 37.7 crore in FY23 to Rs 77.3 crore in FY24.
For the six months ended Sept. 30, 2024, revenue from operations stood at Rs 441.72 crore, while profit after tax was Rs 63.66 crore.
(With PTI inputs)
