Anand Rathi Share and Stock Brokers IPO: Should you apply?

Summary: Anand Rathi Share and Stock Brokers is a full-service brokerage firm that offers services across various securities to a widespread clientele. Though it boasts decent numbers and long-standing client relationships, risks such as negative cash flows remain. We look at if its IPO is worth subscribing to. The Anand Rathi Share and Stock Brokers IPO (initial public offering) will open for subscription on September 23, 2025, and close on September 25, 2025. The brokerage house is raising a fresh issue entirely, with the total issue size worth Rs 745 crore. Let’s break down the company’s business, financials, strengths, risks and valuation to help you make an informed investing decision. What the company does Anand Rathi Share and Stock Brokers is a full-service brokerage house with over three decades of experience in India’s capital markets. It serves a wide spectrum of clients, from retail to ultra-HNIs and institutions, through offerings spanning equities, derivatives, commodities and currencies.  The company has a strong presence across age demographics and its reach extends across 54 cities through 90 branches, over 1,100 authorised persons and robust online platforms. Backed by the Anand Rathi group, it combines an established track record with a multi-channel presence to drive growth from Tier 1 to Tier 3 cities. Track record and valuation When it comes to financials, Anand Rathi appears to be on a steady footing. This is primarily due to the growing inflows in equity and mutual fund investments across the country, as well as Anand Rathi’s long-standing customer base. Between FY23 and FY25, its revenue and profit after tax (PAT) grew annually by nearly 35 per cent and 66 per cent, respectively. Its margins, too, didn’t fail to impress, as the company’s EBIT margin surged by almost 13 percentage points during the two-year period.  At the upper end of the price band (Rs 414), the stock is expected to be valued at 25.1 times its FY25 earnings and 2.1 times the book value. In comparison, Anand Rathi’s peers trade at a median P/E of 17.4 times and an average P/B of 3.4 times. Anand Rathi Share and Stock Brokers IPO details Total IPO size (Rs cr) 745 Offer for sale (Rs cr) - Fresh issue (Rs cr) 745 Price band (Rs) 393-414 Subscription dates September 23-25, 2025