Angel Broking IPO Review: Listing Gains Likely?

The initial public offering (IPO) of the domestic broking company ‘Angel Broking’ opens for subscription on Tuesday, 22^nd September 2020. The offer will close on Thursday, 24^th September 2020.

The Equity share of the broking firm is proposed to be listed on BSE and NSE. Angel broking is the first broking company which is coming with the IPO plan in the last ten years

Angel Broking

The technology-led financial services company ‘Angel broking’ established in the year 1996. It is one of the oldest broking firms in India. The broking firm provides services like broking and advisory services, Loan against shares & financial product distribution to the clients, and margin funding.

Angel broking is the 4^th largest broking company in the country in terms of client base and 2^nd largest in terms of incremental client base in quarter-1, 2021.

Angel broking has registered its name on the top of the list in new client activation after its digital transformation. Presently, the company has 7.7 lakh active customers in the country.

Angel Broking IPO Details

Here is the full information related to the IPO of Angel broking.

IPO issue type: Book Built
Issue Size: 600 Crores (Fresh issue: 300 crores, offer for sale: 300 crores)
Face value: Rs. 10 per equity share
IPO price band: Rs.305 to Rs.306 per equity share
Market Lot: 49 shares
Lot size: Min 1 and Max 13
Minimum order quantity: 49 shares

The proceeds from the IPO will be used for the following purposes:

• To meet the working capital requirement of the company, and for
• General corporate expense.

The financial of last three financial years of the company is showing slight ups and downs. PAT  in FY 2018 was Rs. 1,010.52 million, it was Rs.766.94 million in FY 2019, and it shows PAT of Rs. 866.24 million for FY 20 financial year.

The company has also shown a strong client base with gross client addition of 2.2 lakhs, 2.6 lakhs, 5.6 lakhs in FY 18, FY 19, FY 20 respectively.

Should you Invest?

Apart from the financial data of Angel broking, almost everything thing is very much favorable to the company. The best part is its increasing client base year over year. So, if you are the one who is looking for long-term investment gain, we would recommend you to add this IPO in your investment list.