Angel Broking Ltd. has commenced its three-day initial public offering on Sept. 22—India’s seventh since the Covid-19 outbreak and the fifth in September. The listing also comes at a time when the participation of retail investors in the equity markets in India and around the world has increased following the pandemic-induced lockdowns.
The full-service retail broking firm raised Rs 600 crore by selling up to 1.96 crore shares at Rs 305-306 apiece, according to its red herring prospectus. The IPO encompasses a fresh issue and an offer-for-sale by its promoters; International Finance Corp., which is a major investor; and other shareholders.
The issue opens on: Sept. 22
Issue closes on: Sept. 24
Face value: Rs 10 apiece
Price band: Rs 305-306
Fresh issue: 0.98 lakh shares (Rs 300 crore)
Offer for sale: 0.98 lakh shares (Rs 300 crore)
Listing on: National Stock Exchange and Bombay Stock Exchange
Minimum bid: 49 shares (and in multiples of 49 shares thereafter)
Angel Broking, which was integrated in August 1996, delivers broking and advisory services, margin funding, loans against shares, and distributes financial products to its clients. Broking services are proposed through its online and digital platforms, and its network of more than 11,000 sub-brokers, as of June 30. India’s leading brokerage in terms of authorised persons registered with the NSE managed assets for clients worth around Rs 13,254 crore and has over 2.15 million operational broking accounts as of June 30. Its distribution business involves selling third-party mutual funds and life and health insurance products to clients. The company has 6.3% market share in terms of active clients on the NSE as on June 30, according to data available on the exchange’s website.
Angel Broking’s wealth and net profit hired at an annualised rate of 1.78%, and 8.86%, respectively, during the three years through March 2020, while income from broking services grew 1.71%. Its growth in the quarter ended June was aided by increased participation of retail investors.