Being a leading brokerage firm it offers modern and valuable exchanging platforms and also expert advisory services to its client base through brands like Angel Broking and Angel Bee powered by ARQ.
Angel Broking is at the fourth rank of the retail broking house in terms of the number of active costumers and on NSE with a market share of around 6.3% and 2.15 million operational broking accounts as of June 2020.
It is a pioneer in new customer enactment approaches around 79.55 million people as of June 30, 2020. Its daily turnover average has been raised from Rs. 253,176 million to Rs. 618,945 million.
Coming up with the IPO, here is the information of the firm like the products and services it offers.
Angel Broking provides a few of the essential products and services to its customers.
Broking and Advisory
Margin Trading Facility
Loans against shares
Broking and Advisory: Angel Broking provides broking administrations across value cash delivery, intraday, futures, options, currency, and commodity sections, alongside obligation items.
As an aspect of the broking and advisory administrations offered by Angel Broking, they likewise encourage the opening of Demat accounts to their customers.
Margin Trading Facility: Angel Broking provides Margin Trading Facilities to its customers for leveraging their qualified guarantees by subsidizing their necessities on the cash delivery fragment of equities.
Loan against Shares: Angel Broking Subsidiary, AFPL, which is enrolled as an NBFC, Angel Broking give loan against shares to their retail customer.
Investor Education: It is also an information community that intends to enable financial specialists, including their customers, with comprehension in regard to exchanging and investment items.
As a major aspect of their speculator knowledge activity, they regularly take seminars through different digital mediums, to improve their retail customer’s information with respect to their product research and market trends.
Let’s move forward to the Angel Broking IPO, for that it would be better to have a piece of knowledge about IPO.
IPO refers to the way toward offering shares of a private organization to people in general in a new stock issuance.
Public share issuance permits an organization to raise capital from open financial specialists.
Here the IPO Organizations employ speculation banks to market, set the IPO price and date.
Now as you have an idea regarding IPO we will discuss the Angel Broking IPO details here.
IPO Basic Details
Book Built Offer
IPO Open Date
September 22, 2020
₹10 per Equity Share
IPO Price Band
₹10 per Equity Share
The broking firm is coming up with an IPO in the next few days with an objective to raise funds for their business.
The detailed view helps you to know about financial health, IPO data points, etc that further help you in making the decision regarding investment.
ANGEL BROKING MANAGEMENT INFORMATION
Currently, the company has 6 Directors on the Board. Dinesh D. Thakkar is the Chairman and Managing Director.
Vinay Agrawal is the Director and Chief Executive Officer, Uday Sankar Roy, Kamalji Sahay and Anisha Motwani are the Independent Directors, Ketan Shah is the Non – Executive Director of Angel Broking Limited.
Dinesh D. Thakkar, Chairman, and Managing Director
He passed the Higher Secondary Certificate Examination from the Maharashtra State Board of Secondary and Higher Secondary Education.
He is one of the promoters and has a broking experience of more than 18 years in the broking industry.
ANGEL BROKING IPO DATA POINTS
In this fragment, we will make sure about immensely significant dates related to Angel Broking The most noted dates are IPO opening date and IPO end date, which one should use to participate in IPO.
Angel Broking IPO will open on 22 September 2020 and close for subscription on 24 September 2020.
The face value shares of Angel Broking is Rs. 10 per equity share. The Price band issue is fixed at ₹305– ₹306 for each offer with the unlisted shares having the Grey Market Premium equals to ₹55-₹75. The Issue size of ₹300 Cr Equity Shares by their organization and the offer for sale ₹300 Cr aggregating to the total value of IPO equals to Rs. 600.00 Cr.
The IPO comprises a fresh issue of offers adding up to 49 shares aggregating to Rs. 300.00 Cr. It additionally involves the OFS element through which the advertisers of the organization would offload their current shares.
Under the OFS course, around 49 equity shares are going to be sold under the IPO. This aggregates to around Rs. 300.00 Cr.
The offer for sale will consist of up to (undisclosed) lakh shares aggregating up to:
(undisclosed) lakh shares aggregating up to 183.35million by Ashok D. Thakkar,
(undisclosed) lakh shares aggregating up to 45.00 million by Sunita A. Magnani,
(undisclosed) lakh shares aggregating up to 1,200.02 million by IFC and of up to (undisclosed) lakh shares aggregating up to 1571.63 million by individual shareholders.
The price band range has been set at ₹(undisclosed) – ₹(undisclosed) per share. The IPO size is expected to be up to ₹600 Cr. The market lot size is of (undisclosed) equity shares and the shares will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Pursuant to a resolution on passed on July 11, 2018, and August 14, 2018, the offer has been authorized by the Board of Directors and pursuant to a special resolution of the shareholders passed on July 17, 2018, the fresh issue of equity shares has been approved by them.
The date of inception and the end date of the Angel Broking isn’t yet known. We will let you when the dates are exposed by the enlistment center of the IPO.
Angel Broking IPO shares are to be listed on National Srock Exchange (NSE) and Bombay Stock Exchange (BSE).
Angel Broking IPO Data Points
IPO Date ( Open)
22 September, 2020
IPO Date Close
24 September, 2020
Book Built Issue IPO
49 Eq Shares of ₹10 (aggregating up to ₹300.00 Cr)
Offer for Sale
Offer for Sale (aggregating up to ₹300.00 Cr)
₹10 per equity share
₹305-₹306 per equity share
Min Order Quantity
49 equity shares
Angel Broking IPO Market Lot
In the financial exchange, lot size to the number of shares you purchase in one exchange. In options exchanging, lot size speaks to the absolute number of agreements contained in one subordinate security.
The two essential considerable elements that an investor should think about are Market Lot Size and Market Order Quantity.
Angel Broking Market Lot
Minimum - 1 Lot & Maximum - 13 Lots
Minimum - 49 & Maximum -637
ANGEL BROKING FINANCIAL PERFORMANCE
The revenues of the company showed an increase of 42.02% from ₹5523.17 million in fiscal 2017 to ₹7843.89 million in fiscal 2018 due to an increase in revenues from brokerage operations, income from client funding, from depository services, etc.
However, there has been a sudden large increase in profit after tax from ₹310.14 million in fiscal 2017 to ₹1079.28 million in fiscal 2018. It is yet to be seen if the company is able to maintain such high growth rates.
On similar lines, EPS also increased drastically from ₹2.88 to ₹14.18 from 2017 to 2018.
As per the restated consolidated financial information of the company, the Return on Net Worth of the company for the fiscal years ended March 31, 2016, 2017, and 2018 was 8.59%, 7.96%, and 22.72% respectively.
Particulars For the Financial Year ended (in ₹ Millions)
For the Quarter Ended Jun 30, 2018
For the Financial Year Ended March 31, 2018
For the Financial Year Ended March 31 ,2017
For the Financial Year Ended March 31, 2016
Profit After Tax (PAT)
Basic Earnings Per Share
ANGEL BROKING IPO OBJECTIVES
The proceeds from the offer for sale of up to (undisclosed) lakh equity shares will be given to the selling shareholders. Any proceeds from the offer for sale will not be received by the company for its operations.
The main objectives of the Angel Broking IPO are for funding of the working capital requirements of the company and for meeting expenses related to the general corporate operations.
Other than the above-mentioned objectives, the company will also benefit in terms of enhanced corporate image, brand name, and increased visibility through Angel Broking IPO.
ANGEL BROKING IPO EVENTS
Angel Broking IPO filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on September 3, 2018, for the book building IPO.
The offer will open on (undisclosed) and close on (undisclosed). The finalization of the basis of allotment is expected to happen by (undisclosed) and the initiation of refunds is expected to start by (undisclosed).
The transfer of shares to Demat accounts is expected to start on (undisclosed) and the expected listing date will be (undisclosed).
ANGEL BROKING IPO RECOMMENDATION
Before deciding whether to invest in Angel Broking IPO or not, let us discuss some of the key strengths and risks related to the business of Angel Broking.
Why Subscribe to the Angel Broking IPO?
Angel Broking has been on the broking and securities exchange scene for more than twenty years and appreciates solid brand esteem. Moreover, the IPO currently comes when the organization is encountering outstanding development in its customer base.
Some more reasons of why to subscribe to Angel Broking IPO are:
Angel Broking is the Fourth-Largest Retail Broking House of India
Angel Broking has a market share of 6.3% and a good client base that makes it the fourth largest retail broking house.
And also the organization has additionally appreciated an average month to month customer addition of roughly 115,565 customers in Q1 FY21 alone, instead of an average month to month customer addition of 46,676 customers for the entire of FY20.
This means an amazing development pace of over 147.59%. With such enormous development, the organization is all around ready to ascend the positions soon.
Outstanding Brand Equity
With over twenty years of experience and nearness in the stockbroking business, Angel Broking as a brand has collected a lot of regard and brand value.
In its journey till yet, the broker offers the powerful web and trading platforms that help customers to gain seamless trading experience.
It provides Angel BEE, ARQ, the most perceived trading platform in the retail broking industry. On one hand, where Angel Bee is the mutual fund app, the ARQ offers you the personalized recommendation that helps you in making your investment decisions.
Angel Broking has a solid brand image as the brokerage firm remains more focused on the advanced techniques and strategies to offer the best assistance to its customers.
Indeed, the solid brand equity and nearness that Angel Broking orders in the business have legitimately affected the organization’s customer procurement process.
Among the average month to month customer increments during the entire of FY20, around 11,249 customers were gained by the organization through references.
Steady growth over the past few years
Over the years, the firm has been growing and projecting a good development on all fronts. As for gross customer increments, the organization has seen reliable development from around 0.22 million in FY18, 0.26 million in FY19, 0.56 million in FY20 to 0.35 million in FY21.
Its growth and progress are completely depicted through the CAGR of 59.54% from FY18 to FY 20.
Apart from this, the active customer rises from 0.36 million in March 2018 to 0.41 million in March 2019 and further to 0.58 million in March 2020 and 0.77 million in June 2020.
Lastly, the organization’s average day by day turnover has additionally observed a critical development of around 144.47% in only a range of a year from Rs. 253,176 million in Q1 FY20 to Rs. 618,945 million in Q1 FY21.
Furthermore, its diversified product portfolio meets the maximum needs of clients.
This has not just disturbed the stockbroking business, however, has additionally helped the organization take care of the varying needs and necessities of different customers.
Few class-driving computerized devices and platforms made by Angel Broking incorporate the mobile versatile application, internet browser-based exchanging platform, Angel SpeedPro, Angel BEE, and ARQ; A standard-based speculation motor.
Notwithstanding these innovative stages, the organization likewise gives a large group of other budgetary administrations, for example, speculation warning, speculator instruction, research administrations, edge subsidizing, advance against offers, and circulation of different monetary items to its customers.
Apart from brokerage, the firm offers additional services like investment advisory, investor education, funding, loans that help clients in meeting their financial needs.
Potential Growth towards Great Success
With the growing advent of technology and the major use of mobile phones, many people are advancing towards the financial exchange.
Indeed, in excess of 450 million new speculators have originated from Tier-2 and Tier-3 Indian urban areas. This number is probably going to just ascent considerably further in the coming years.
The changing business sector elements and moving purchaser base have opened up a broad universe of potential outcomes, which the broker is ready to exploit with their advanced digital platforms.
Risks Associated with the Angel Broking IPO
Now, let us discuss various risks related to the business of Angel Broking.
Falling Economic and Political Condition of the Country
One of the biggest factors is exposure to risk due to economic and political conditions in the country. Global economic conditions and political scenarios may result in negative investor sentiment which has happened before also. It may result in the profitability of the business.
Subject to Regulatory and Statutory Requirements
The business is subject to many regulatory and statutory requirements imposed by many authorities like SEBI, IRDAI, RBI, stock exchanges, etc.
Any failure or interruption in their Information technology systems may affect the business negatively.
Company’s Revenue Depends Upon the Brokerage
Their broking related services have a significant contribution to the revenues of the company. Any reduction in their brokerage fee may result in adverse effects on the business and financial condition of the company.
Higher Authorities Involved in Legal Proceedings
The company, its subsidiaries, promoters, Directors, etc. are involved in certain legal proceedings and any adverse ruling in them may pose a risk to the overall profitability of the company.
Business is Subjected to Operational Risks
The business is also subject to operational risks like humans and systems errors, inadequate technology infrastructure, delay or failure to timely transfer, pledge, or unpledged securities to and from depository participants, etc.
Also, the company faces severe competition from its peers which may result in the restricted growth of the business.
After analyzing both sides, it may be said that investors may subscribe to the Angel Broking IPO for the long-term for better gains.
In case you are looking to apply for this IPO or stock market investments in general, let us assist you in taking steps forward:
Thinking about these variables, Angel Broking IPO seems to be an extremely appealing choice for speculators.
By subscribing to this issue, financial specialists may encounter remarkable development paces of up to 25%, as the ongoing IPOs have undoubtedly indicated us.
Angel broking business is moored by the retail customers, to whom they offer items and administrations through the web and computerized platforms our system of over 11,000 Authorized Persons, as of June 30, 2020.
Willing to invest in Angel Broking IPO, open a free Demat account now!