Anand Rathi Share IPO: IPO subscribed 3 times till day 3 – Know the signals from the grey market?:

News Topical, Digital Desk : Anand Rathi Share and Stock Brokers Ltd.'s ₹745 crore initial public offering (IPO) is receiving a strong response from investors. As of September 25, the last day of subscription, the issue has been subscribed 2.88 times. According to exchange data, the retail category has subscribed 2.56 times, qualified institutional buyers (QIBs) 0.14 times, and non-institutional investors (NIIs) 7.35 times.

The company's shares are also receiving a strong response in the gray market. The shares are available here at a premium of ₹37, a nearly 9% increase over the issue price of ₹414. Consequently, the share price could reach approximately ₹451 on listing day, offering investors a good listing gain.

The IPO is a completely fresh issue. The company has set a price band of ₹393-₹414 per share for the IPO. Investors can bid in a minimum lot of 36 shares. The entire issue is a fresh issue, with no offer for sale (OFS). Shares worth ₹10 crore have been reserved for employees. Even before the issue opened, the company has raised ₹220.49 crore from anchor investors.

How will the funds be used? Of the funds raised through the IPO, approximately ₹550 crore will be used for long-term working capital needs, while the remaining amount will be retained for general corporate purposes. Anand Rathi Shares & Stock Brokers, with a valuation of approximately ₹2,600 crore, is a full-service brokerage firm.

About the Company: The company provides broking services, margin trading, and distribution services for financial products. Its network includes 90 branches, 1,125 authorized representatives, and digital platforms. It serves a wide range of clients, from retail investors to HNIs, ultra-HNIs, and institutional clients.

Financial Performance: The company's profit for FY25 increased by 34% to ₹103.6 crore, compared to ₹77.3 crore in the previous year. Revenue increased by 24% to ₹845.7 crore, compared to ₹681.8 crore in the previous year. The book running lead managers for the IPO include Nuvama Wealth Management, DAM Capital Advisors, and Anand Rathi Advisors, while MUFG Intime India is the registrar to the issue. The IPO share allotment will take place on September 26th, and the company's shares will be listed on the stock exchanges on September 30th.