Angel Broking IPO : Subscribe or Not

Verdict : Subscribe with a long term perspective only. 

Angel Broking is one of the largest retail broking houses in India in terms of active clients on NSE as of June 30, 2020 (Source: CRISIL Report). Due to the growing base of NSE active clients, the company’s market share improved to 6.29%, registering an increase of 95 bps in June, 2020 over March, 2020 in NSE active clients.

 

Angel Broking is a technology-led financial services company providing broking and advisory services, margin funding, loans against shares (through one of it’s subsidiaries, Angel Fincap Private Limited) and financial products distribution to clients under the brand “Angel Broking”. The company manages over 2.15 million operational broking accounts as of June 30, 2020.

 

Now, the company has launched its Initial Public Offer (IPO).

 

Angel Broking’s Strengths

 

1) Angel Broking is Ranked No. 1 in Authorised Persons, second largest in terms of incremental active clients on NSE in Q1FY21 and fourth largest in terms of active clients on NSE as of June 30, 2020.

 

2) The company is consistently expanding it’s market share in terms of retail turnover with Cash Market Share increasing to 17.3% in Q1FY21 from 8.5% in FY18, F&O Market Share increasing to 7.8% in Q1FY21 from 2.9% in FY18; Commodity Market share increasing to 24.6% in Q1FY21 from 8.8% in FY18.

 

3) Angel Broking acquires clients through diversified digital platforms spanning across Performance Marketing, Referrals, Digital Referral Associates and Authorised Person Network.

 

4) The company has a diversified product offering across segments, backed by a robust infrastructure, at competitive prices

 

5) Angel Broking’s customer outreach spans across approximately 97% or 18,649 pin codes in India as of June 30, 2020.

 

Here are the key details of Angel Broking’s IPO.

 

Issue Open Date: Tuesday, September 22, 2020

Offer size: upto ₹ 600 crores

Price band: ₹ 305 – ₹ 306 per Equity share of face value ₹ 10 each

Lot size: 49 shares

Bids can be made for a minimum of 49 Equity Shares and in multiples of 49 Equity Shares thereafter

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