Anand Rathi Share & Stock Brokers has set a price band of Rs 393-414 for its initial public offering, comprising a fresh issue of up to Rs 745 crore. At the upper end of the price band, the company’s valuation will be around Rs 2,596 crore.
The issue will open for subscription on Tuesday and close on Thursday.
Pradeep Gupta, co-founder and vice chairman of Anand Rathi, told FE, “The whole industry is becoming more and more capital intensive. The IPO is largely for the growth of our company and to create a balance for the revenue stream.”
What did Pradeep Gupta say?
He said proceeds will be utilized for working capital requirement and margin trading funding facilities being provided to customers. On the industry growth, he said: “We have a strong faith in GDP growth, if that happens, the capital market is going to grow…”
While Gupta believes Sebi rules to curb the enthusiasm in derivatives trading to affect the industry, he said it is going to be less for his company, compared with other players in the market.
‘We have investors who are looking at it as a hedging instrument’: Gupta
Of its total revenue, broking has got about 60% share, and within that, 50% comes from the cash market. “In overall revenue, the derivatives’ share is about 25%, we have those kind of investors who are looking at it as a hedging instrument, rather than a trading instrument,” he said.
“We are making our technological or digital deliveries more robust and at par with any other technological player on the market place,” Gupta said.