Angel Broking IPO

Angel Broking IPO Details

Angel Broking is one of the oldest retail brokers in India. Established in 1996, Angel Broking’s name is synonymous with traditional brokerage houses. Angel Broking enjoys a strong market presence with a market share of around 6.3% and 2.15 million operational broking accounts as of June 2020.

A successful crossover to ‘Digitisation’ has enabled Angel broking to acquire 85.21% of its clients digitally in Q1 of FY21. Angel Broking provides the entire suite of financial services from broking to wealth management and advisory. The company manages Rs 13,254 crore in client assets and will be the 8th public issue in 2020.

• The total Issue Size is 6,000 mn Eq Shares of Rs.10 each
• Angel Broking’s Offer for Sale of 3,000 mn Eq Shares of Rs.10 and will be listed in the National and Bombay Stock Exchange.
• With this IPO; Angel Broking intends to meet its capital expenditure, expansion and corporate purposes

Angel Broking IPO Review/Ratings

Key Competitive Strengths

1. One of the largest broking houses with strong brand equity.
2. Client acquisition through diversified digital platform.
3. Integrated, end to end, and advances digital experience ensuring client satisfaction.
4. Diversified product offering across segments at competitive price.
5. Robust business metrics building operating leverage.
6. Experiences management team with proven executive capabilities.

Risks and Concerns

1. Increasing competition in the industry.
2. Challenges from discount brokers business model.
3. Changing norms by SEBI.
4. Volatility in equity markets.

Download the Angel Broking IPO Report

Angel Broking IPO Fundamental Analysis

• The Net profit increased from 834 mn in FY 19 to 867.9 mn in FY 20. This is a growth of 4.06%.
• ABL has over 9 lakh NSE active clients as of Aug 31' 2020. The company posted significant progress in client acquisition from 1.06 mn in FY18 to 2.15 mn by Q1FY21.
• With an app like Angel Broking Mobile App, Angel BEE App, SpeedPro, and NXT, the company has planned to leverage the growth opportunity in India’s under-penetrated brokerage industry. In Q1FY21, 85% of ABL’s total clients have been acquired digitally of which 53% are acquired through performance marketing, 21% through referrals and 11.2% through digital referral Associates (DRA)
• Promoters Ashok D Thakkar is selling 3.2 mn shares (Rs183.35 mn) and Sunita A Magnani is selling 0.75 mn shares (Rs45 mn). Post issue, the promoter stake will reduce to 43.8% from 55.2% in pre-issue. The public shareholding will increase from 43.8% to 56.2% post issue.
• Price to Earnings Ratio (P/E) for FY20 = 28.9
• Return on Equity (ROE) for FY 20 = 14.7%
• Price to Book Ratio (P/B) = 2.7
• Return on Capital Employed (ROCE) = 23%
• Net Worth = 9390.8 mn

Online Procedure to Apply For Angel Broking IPO

1. Go to the IPO Section => IPO Listing => Open IPO.
2. On tapping Angel Broking IPO, you can directly click on Subscribe to apply or even view the IPO details.
3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
4. Once you select 'Subscribe'. Your bid will be executed.
5. You can check the status of your IPO bid in the IPO Transactions section.