Anand Rathi IPO GMP Today: Price, Review, and Subscription Insights
Anand Rathi Share & Stock Brokers Ltd (part of Anand Rathi Group) has launched a ₹745 crore IPO that opened on 23 September 2025. It offers a fresh issue of shares (no offer-for-sale). We see strong market buzz, especially around the grey market premium (GMP) and investor subscription. In this article, we unpack the IPO details, GMP today, financials, strengths & challenges, and subscription trends.
Company Overview
- Anand Rathi Share & Stock Brokers provides broking, margin trading, wealth advisory, research, mutual funds distribution, and related financial services.
- It has a wide presence: 90 branches in 54 cities; over 1,125 authorised persons across 290 cities.
- Client base includes retail, high net worth individuals (HNIs), institutional clients.
IPO Details
- Issue size: ₹745 crore via fresh issue of ~1.80 crore equity shares.
- Price band: ₹393 to ₹414 per share. Face value ₹5 per share.
- Lot size: Minimum 36 shares per lot. That means at upper price band, one lot costs ~₹14,904.
- Reservation of shares:
• ~50% reserved for Qualified Institutional Buyers (QIBs)
• 35% for Retail Individual Investors (RIIs)
• 15% for Non-Institutional Investors (NIIs) - Key dates:
• IPO open: 23 Sep 2025
• IPO close: 25 Sep 2025
• Basis of allotment: 26 Sep 2025
• Expected listing: 30 Sep 2025 on NSE & BSE.
Grey Market Premium (GMP) Insights
- GMP today stands at around ₹31-₹32 per share.
- This implies a listing price estimate of ~₹446 per share (upper band ₹414 + GMP ₹32), which suggests potential ~7.7% gain beyond issue price.
- GMP had been more volatile before. It had ranged higher earlier but has moderated as the IPO opened.
Financial Performance Review
- Revenue (Operations) in FY25 was ~₹845.70 crore, up significantly from ~₹467.83 crore in FY23.
- Profit After Tax (PAT) rose to ~₹103.61 crore in FY25 from ~₹37.75 crore in FY23.
- Growth rates are strong: high double-digit CAGR in revenue and profit over the past two years.
Strengths and Opportunities
- Diverse business lines: broking, advisory, wealth management, etc. This helps reduce dependence on any one segment.
- Strong tie-ups and institutional confidence: ₹220.5 crore anchored via large funds (HDFC MF, Kotak AMC, SBI Life etc.) before public bid.
- Good presence across many cities; the authorised persons network helps reach smaller towns.
- Healthy financials; rising retail participation in India’s markets supports future growth.
Risks and Challenges
- The broking business is volatile. When markets are weak or uncertain, trading volumes fall; that can hurt revenues.
- Competition is strong. Discount brokers are growing fast. Full-service brokers need to offer differentiated value to keep clients.
- Regulatory risks are real. SEBI rules, margin norms, compliance, etc., can change, affecting operations.
- GMP is based on grey-market speculation. It can move quickly and not always predict actual listing performance. We must treat it cautiously.
Subscription Status & Investor Interest
- On Day-1, the IPO saw ~12% subscription by ~11:30 AM.
- Retail portion: ~18% of the reserved portion had been filled by that time.
- NII portion ~11% subscribed by that time.
- QIB portion had little or no subscription in early hours.
Valuation and Peer Comparison
- On upper band (₹414), the IPO valued at ~18.4× FY25 earnings.
- Peers like Motilal Oswal, IIFL Capital, Angel One have varying P/Es; some lower, some similar. Anand Rathi sits in a mid to upper-range among broking / financial services peers.
- With its ARPC (Average Revenue Per Client) and client retention, the company argues that its valuation is justified if growth holds.
Listing Expectations
- Given current GMP (~₹32) over upper price band, listing at ~₹446 is possible, implying ~7.7% listing pop (if markets stay stable).
- However, listing gains depend on broader market mood, investor demand, and post-IPO performance.
- Long term, the firm’s strengths could translate into steady performance if it keeps margins healthy and maintains regulatory compliance.
Conclusion
We from market observers see Anand Rathi IPO as a strong and interesting offer. It has solid financials, credible institutional backing, and a fair valuation compared to its peers. Yet, risks like competition, regulation, and market volatility are real. The grey market premium suggests some optimism, but that’s speculative. For those with at least a medium-term view and comfort with financial services risk, Anand Rathi IPO looks worth considering. For more conservative investors, watch subscription trends and GMP movement before deciding.
FAQS:
Anand Rathi shares may fall due to weak market sentiment, profit booking, or lower than expected demand. Sometimes, broader stock market trends also affect IPO performance.
A high GMP shows strong investor interest before listing. It often means listing gains may be higher. But it is only a market estimate, not a guarantee.
No, an IPO is not always successful. Success depends on company performance, market conditions, and investor confidence. Some IPOs gain, while others may fall after listing.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.
