Angel Broking IPO Details

"It was 150 percent, 102 percent."
Confused as to what these figures are? These are the figures that the market witnessed with respect to the subscription of IPOs that were issued a few days ago.
The IPO market seems to be all good and happy with the various companies experiencing a record-breaking subscription in the Dalal street. While the market has become a war zone with heavy fluctuations in recent times, the optimism for these IPO'S seems to be unaffected. 

However, this season of IPO isn't done yet. There are many more companies that are bracing to make an entry into the share market. And one such company that will be opening its subscriptions on September 22 is Angel Broking. 

It is time we find the key factors pertaining to the Angel Broking IPO.

A brief look into the Angel Broking Company

The name 'Angel Broking' itself strikes a bell. The company, which was incorporated in 1996, holds a strong brand name in its possession. 

Angel Brokers is one of the oldest stock broking houses in the country. Founded by promoters, D. Thakkar and Sunita A. Magnani, the company is providing a wide list of services to its clients, and a few of them are as follows, 

• Brokerage and related services.

• Advisory services.

• Funding of margin.

• Provision of loans against shares (this is ultimately done through AFPL).

• Other financial services are also offered.

Angel broking is a company that has placed a strong emphasis on technology. The company has made major technological adoptions since 2016. It is making a swift transition from the physical model to the technological or digital model. 

This step comes forth with digitalization, which has now become the new norm. You can also see the company shifting from Brick and Mortar to the online platform. 

Angel Broking is pulling the transformation quite well with having more than 4.39 million downloads of its mobile app. Even its 'Angel bee' app saw a 1 million download, representing its strong digital presence. It has ensured that its clients can access the various services it provides, both online and offline. 

The company has a strong client base and forms to be the 4th largest brokerage firm, holding a market share of 6.3%. It also has a large client base that actively operates in the NSE. 

Further, the company manages nearly 13,254 crore worth of assets and has over 2.15 million brokerage accounts. The company can be called the king in 'new client activation,' an example being more than 1 lakh new customers joining it since the lockdown, which began in March.

Angel Broking Financials

Let us have a quick peek into the financials of Angel Broking. Refer to the table below and find out the company's major financial figures and its movements under various periods. 

Summary of Angel Broking’s financial statement (in millions) 

Further, the company has registered a daily turnover increase to 618,945 million from 253,176 million in the financial year 2020. 

Details of Angel Broking IPO

Quickly read through to find out some of the key details pertaining to Angel Broking IPO. 

The brokerage house is aiming to raise an amount of 600 crores from the issue. The subscriptions for the Angel Broking IPO will be opened for investor participation from September 22 onwards. However, the last date to make a subscription has been limited to September 24. 

This will be a book building issue comprising both fresh issues and offer for sale. The fresh issue will be consisting of 300 crores worth of shares. This will be followed by an offer for the sale of 300 crores, which will majorly come from its promoters. 

About 18.33 crores and 4.5 crores worth of shares will be parted by the promoters and will be divested as a portion of the offer for sale. The rest will come from investors of IFC and other individual investors. 

The price band will be 305-306 per equity share. The investors can subscribe for a minimum of 1 lot comprising 49 shares and in multiples of 49 after that. But the maximum number one can subscribe to is limited to 13 such lots. 

The allotment issue will be released on September 29, and all the process will be done on or before October 1. 

Hence, you can expect the company to list its shares for the first time on October 5. The shares will be listed in both NSE and BSE. The company claims that the proceeds from the issue will be used to fulfill the firm's working capital and other corporate requirements. 

Angel broking IPO will have ICICI securities, SBI markets, and Edelweiss capital as the lead managers along with Link Intime India as its registrar. 

The anchor investors bidding happens today, i.e., September 21. The equity shares which are to be issued will carry a face value of Rs 10. And the subscription of retail allocation has been limited to 35%. And following the issue, the promoter holding will be decreased to 65.42% 

Angel Broking IPO Lot Size and Price

Important points to note

Despite having a strong brand name and a good client base, the company operates in a sector that involves heavy competition. It is also important to note that its listed peers have been unable to generate the expected returns. Hence, it is advisable to consider this factor while investing. 

The various metrics also seem to remain neutral about the various aspects of the issue. Nevertheless, its PAN India presence and pretty strong financials will always be by your side if you are opting to invest. Also, the probable listing gains and other factors will, for sure, bring the investor population flooding.

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To sum up

While they say 'opportunities don't knock twice,' the year 2020 has been acting quite contrary to that. IPOs seem to knock the doors of the market one after the other. So all you have to do is just open the door and grab them. Angel Broking being the 8th IPO this year, it is high time you make up your mind and subscribe for it before you exhaust your chance.