Anand Rathi Share and Stock Brokers Ltd, the brokerage arm of Anand Rathi Group, made its market debut on Tuesday, September 30, with a modest rise in share price on major Indian stock exchanges. The stock kicked off trading on the National Stock Exchange (NSE) at Rs 432 per share, marking a 4.35 per cent increase from the issue price of Rs 414. Meanwhile, on the Bombay Stock Exchange (BSE), shares started at Rs 432.10, showing a 4.37 per cent gain over the IPO price.
This initial trading reflects a lukewarm reception compared to the buzz generated during the subscription phase. At 12:48 pm, the shares were trading at Rs 447.30 on NSE.
Subscription Details
The IPO saw strong investor interest, closing with an overall subscription rate of 20.66 times by the end of the bidding on Thursday. The qualified institutional buyers (QIB) segment was oversubscribed by 43.80 times, while the non-institutional investor category saw a 28.60 times subscription. Retail individual investors (RIIs) showed a decent response with a 4.78 times subscription rate.
Before the public issue, Anand Rathi Share and Stock Brokers had secured over Rs 220 crore from anchor investors on Monday. The IPO price band was set between Rs 393 and Rs 414 per equity share, each with a face value of Rs 5. The offering allocated up to 50 per cent of shares to QIBs, at least 15 per cent for non-institutional investors, and a minimum of 35 per cent reserved for retail investors.
Grey Market Insights and Future Outlook
The grey market premium (GMP) for Anand Rathi shares stood at Rs 31 on the day of listing, indicating that investors were willing to pay a premium above the IPO price. Based on this, the anticipated listing price was approximately Rs 445, representing a 7.49 per cent premium over the top end of the IPO price band. However, expert analysis reveals that the GMP has fluctuated between Rs 0 and Rs 70 over the past 16 sessions, showing some volatility and a slight downward trend recently.
The IPO consists entirely of new shares, with no offer-for-sale component. Funds raised, amounting to Rs 550 crore, are planned to support the company’s long-term working capital needs and general corporate purposes.
