Finshots Daily The Anand Rathi Share and Stock Brokers IPO explained
Sep 23, 2025
Dive into the details of the Anand Rathi Share and Stock Brokers IPO, a significant move aiming to raise 745 crore for growth. Discover the company's business strategies, revenue mix, and focus on margin trading. The discussion also tackles potential legal and regulatory risks, including criminal proceedings and SEBI restrictions. Finally, get insights into valuation concerns that investors should consider before jumping in.
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Humble Start To Full-Service Financial House
- Anand Rathi Group began in 1994 without a dramatic origin story and grew steadily with early research and investment banking work.
- Over time the group expanded into wealth, insurance broking, real estate, reinsurance and lending, becoming a full-service financial group.
Revenue Mix And Growth Trajectory
- ARSSBL earns mainly from broking (about 60%) and non-broking services (about 23%) like MTF and product distribution.
- The firm reported Rs 847 crore revenue in FY25 with strong recent growth and aims to capitalise on rising household flows to markets.
Big Headroom For Market Participation
- Household savings are shifting from bank deposits toward capital markets, rising market share from 2% to 9% over time.
- Low overall participation (4-5% trade stocks) indicates substantial room for broking industry growth in India.