Home >Markets >Ipo >Angel Broking IPO fully subscribed: Key things to know

The IPO of Angel Broking, which opened on Tuesday, was 1.24 times subscribed as of 4:30 pm on Day 2. The price band for the 600-crore initial public offer (IPO) has been fixed at 305-306 per share. The offer will close on September 24. Ahead of the IPO, Angel Broking on Monday raised nearly 180 crore from 26 anchor investors. It allocated more than 58.8 lakh shares to the anchor investors at a price of 306 apiece. The issue was 76% subscribed at the end of Day 1.

Lot size and probable listing date

The lot size in Angel Broking IPO is 49, which means that investors need to bid for a minimum of 49 equity shares and in multiples of 49 thereafter. According to brokerages, the share allotment date is likely to be finalised on September 29 and shares are likely to get listed on October 5. Link Intime India Private Ltd is the registrar of this issue.

Angel Broking IPO comprises fresh issuance of shares worth 300 crore and offer for sale of 300 crore by promoters and other shareholders. International Finance Corporation will sell shares to the tune of 120 crore in the offer for sale. Proceeds of the issue will be utilised for meeting working capital requirements and for general corporate purposes.

ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are the book-running lead managers to the issue.

Angel Broking Ltd. is one of the largest retail broking houses in India in terms of active clients, providing broking and advisory services, research services, margin funding, loans against shares and financial products distribution.

Brokerage revenue formed 69.54% of the total revenue whereas other revenue from lending activities, income from depository operations, portfolio management services, income from distribution, and other activities formed 30.46% of the total revenue in FY 2020.

"Over FY16-20, Angel’s revenue/PAT grew at a CAGR of 13%/27%, led by 13%/6% CAGR in brokerage income/interest income. However, its financials were muted over last two years due to its investment in digitization of operations and improving its services," domestic brokerage Motilal Oswal said.

In FY20, Angel Broking had reported revenues of 754 crore with net profit at 81 crore.

What analysts say on Angel Broking Issue

"At the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which is seems fairly priced. We like Angel given its (1) leading position in retail broking, (2) robust technology platform and (3) innovative offerings. Considering the sharp rise in retail participation and ongoing industry challenges, top players are likely to gain market share," says Motilal Oswal brokerage, recommending a subscribe to the issue.

Another brokerage Anand Rathi has recommends subscribe. "We believe Angel Broking Ltd. IPO & OFS is fairly priced at current price band considering its financial performance and growth prospects," it said.

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