Angel One to raise up to ₹2,000 crore via preferential issue, QIP

Angel One is planning to raise up to ₹2,000 crore capital through a preferential issue, further public offer (FPO), qualified institutions placement (QIP) or other modes, said the company in a BSE filing on Thursday.

The plan to raise funds via different modes was approved at a meeting of the board of directors held earlier in the day. The company will now seek approval from the shareholders for the proposed fundraise.

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The raised funds will be used by the company to augment and build financial flexibility and to ensure a smoother expansion of its broking business. The proposed amount will also enable the company to harness emerging opportunities across the inorganic universe within the fintech space.

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Apart from the plan to raise funds, the board also approved an increase in the authorised share capital of the company from ₹100 crore to ₹120 crore.  

Angel One's share price closed 0.5 per cent lower at ₹3,072.35 per share on BSE on Thursday. In January, the brokerage house reported a 14 per cent annual rise in its net profit at ₹260.3 crore for three months ended December 2023. Angel One had posted a net profit of ₹228 crore in the year-ago period. Despite a rise in its net profit on an annual basis, the company's profit dropped by 14.5 per cent on a sequential basis.

The company's revenue from operations jumped by 41.5% to ₹1,059 crore in the third quarter ended December 31, 2023, from ₹748.6 crore a year ago.