Angel Broking IPO Up for Grabs from Today- Here's What You Should Know Before Investing

Angel Broking’s initial public offering opened for subscription today. The Rs 600 crore worth of equity shares for sale constitute a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore. India’s fourth-largest stock broking firm has set a price band of Rs 305-306 per share.

The firm on Monday raised Rs 120 crore from 12 anchor investors, a day before its IPO was to go up for trading in the stock market. The company decided to allocate 58,82,352 equity shares to 12 anchor investors after consulting merchant bankers. Each share was sold at Rs 306.

These marquee investors included Macquarie Fund Solutions, Invesco Trustee, Max Life Insurance company, ICICI Prudential, HDFC Mutual Fund, Sundaram MF and Goldman Sachs India.

Business Insider reported, citing KR Choksey IPO research report, that the stock broking firm manages Rs 132.5 billion of Assets under management (AUM). It had an overall client base of 2.15 million as of June 2020. Angel broking offers broking and allied services via online and digital platforms.

“The broking house has seen incremental growth in market share backed by digital and technology led initiatives which are expected to support company’s overall growth in the industry,” Moneycontrol reported quoting Choksey.

With a network of 11,000 authorised persons, the firm has pan-India presence of 18,649 pincodes. Over the last three years, more than 85 per cent of Angel Broking’s client has connected with the firm primarily through digital platforms.

Angel Broking reported revenue of Rs 710.5 crore in FY20, a fall of 3.6 per cent compared to the previous year. In the first of this fiscal, it registered revenue of Rs 236.1 crore.

Business Insider also reported on the risk factors, citing ICICI Direct and HDFC Securities report, that investors should consider before subscribing to the IPO of Angel Broking. The firm received 72.2 per cent of the total income from broking business as of June 30. According to HDFC Securities, if the brokerage fee is reduced, it will affect the business of the firm. On the other hand, the ICICI that Angel Broking may also run into concentration risks.