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With the IPO season kicking off, right on the heels of the Chemcon IPO, a popular stockbroking house has launched its IPO – Angel Broking Limited. Launching on September 22, 2020, the Angel Broking IPO is one of the most anticipated IPOs of 2020. Here is a look at all the details of the IPO.

How to Apply for Angel Broking IPO?

You can apply for Angel Broking IPO on Groww web easily via UPI. Go to IPO ( login to your account). There you would be able to see the list of all open IPOs. Select Angel Broking IPO and click on ‘Apply’.

Read More: Steps to Invest in IPO on Groww

Angel Broking IPO Details

IPO DateSeptember 22, 2020 to September 24, 2020
Issue TypeBook Built Issue IPO
Issue SizeEquity Shares of Rs.10 – Rs.600 crore
Fresh IssueEquity Shares of Rs.10 – Rs.300 crore
Offer for SaleEquity Shares of Rs.10 – Rs.300 crore
Face ValueRs.10 per equity share
IPO PriceRs.305 to Rs.306 per equity share
Market Lot49 Shares
Min Order Quantity49 Shares
Listing AtBSE, NSE

Angel Broking IPO Tentative Timetable

Bid/Offer Launch dateSeptember 22, 2020
Bid/Offer Last dateSeptember 24, 2020
Basis of Allotment finalization dateSeptember 29, 2020
Initiation of RefundsSeptember 30, 2020
Credit of Shares to Demat AcctOctober 01, 2020
IPO Shares Listing DateOctober 5, 2020

Angel Broking IPO Category-wise Break-Up

CategoryNumber of sharesAmount (in crores)
Anchor Investor58,82,353180
NII29,41,17690
QIB39,21,569120
RII68,62,744210
Total1,96,07,842600

About the company – Angel Broking Limited

Launched in 1996, Angel Broking Limited is one of the largest full-service retail broking houses in India. It offers retail trading opportunities in products like equity, mutual funds, commodities, PMS, IPOs, etc. along with depository services.

Angel Broking is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Metropolitan Stock Exchange of India Ltd. (MSEI), Multi Commodity Exchange of India Ltd. (MCX), and the National Commodity & Derivatives Exchange Limited (NCDEX).

As of June 30, 2020, Angel Broking Limited is one of the largest retail broking houses in India in terms of the number of active clients on the NSE. The company’s customer outreach spans across 96.87% of pin codes in India with more than 2.15 million operational broking accounts and around Rs.132540 million in client assets as on June 30, 2020.

It is a tech-driven company offering broking and advisory services, margin funding, loan against shares, and financial product distribution to its clients. Angel Broking offers its services via a range of digital, web, and .exe platforms. The seamless integration between these platforms allows its clients to have a hassle-free experience allowing the company to benefit from the development of the Indian financial market with a clear emphasis on digitization.

1. Strengths of Angel Broking Limited

  • One of the fastest-growing retail broking houses in India. The number of operational accounts increased from 1.06 million in March 2018 to 2.15 million in June 2020 – a CAGR of 151.91%!
  • Client acquisition through diversified digital platforms like performance marketing, referrals, digital influencers, and authorized person network.
  • Integrated, end to end, and advanced digital experience ensuring client satisfaction
  • Diversified product offering across segments at competitive price
  • Robust business metrics building operating leverage 
  • Experienced management team with proven execution capabilities

2. Objects of the Offer

Angel Broking proposes to utilize the net proceeds from this issue towards funding the following objects:

  1. To meet working capital requirements; and
  2. General corporate purposes

3. Risk Factors

  • The outbreak of COVID-19 or outbreak of any other severe communicable disease could have a potential impact on the company’s business, financial condition, and results of operations.
  • General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations, and prospects.
  • Being a broking house, Angel Broking is subject to extensive statutory and regulatory requirements and supervision, which have a material influence on, and consequences for, its business operations.
  • The operation of Angel Broking is highly dependent on information technology and is subject to risks arising from any failure of, or inadequacies in, its IT systems.
  • Since the company relies on its broking and related services business for a substantial share of its revenue and profitability, any reduction in the brokerage fee could have a material adverse effect on its business, financial condition, cash flows, results of operations, and prospects.
  • There are operational risks associated with the financial services industry which, if realized, may have a material adverse effect on its business, financial condition, cash flows, results of operations, and prospects.
  • The company may fail to detect money laundering and other illegal or improper activities in its business operations on a timely basis, which may have an adverse effect on its reputation, business operations, financial condition, and results of operation.
  • The financial performance of a broking house depends on the interest rate risk. The inability to manage the interest rate risk can have a material adverse effect on its business prospects, financial condition, and results of operation.

Important information about Angel Broking Limited

Here is a quick look at some important information about Angel Broking Limited:

1. Overview of Angel Broking’s Financials

30-Jun-2031-Mar-2031-Mar-1931-Mar-18
Total Assets29,731.0221,592.0521,690.5622,828.67
Total Income2,440.867,427.797,626.477,536.55
Total Expenses1,929.776,258.146,437.736,058.49
Profit After Tax381.83866.24766.941,010.52

All amounts in INR million

2. Promoters of Angel Broking IPO

  1. Dinesh D. Thakkar
  2. Ashok D. Thakkar
  3. Sunita A. Magnani

How can you apply for the Angel Broking IPO?

You can apply for the Angel Broking IPO by using one of these two methods of payment:

  1. ASBA – available via the net banking interface of your bank account. Almost all banks offer this facility
  2. UPI – available with brokers who do not offer banking services. 

Summing Up

While Angel Broking is a famous name in the stockbroking industry, before investing in its IPO, ensure that you read through the company’s financials and the Red Herring Prospectus (RHP) carefully. Remember, as India and the entire world is taking steps to minimize the economic impact of the pandemic, some businesses will thrive while some might perish. Ensure that you consider all aspects carefully before investing. 

Happy Investing!

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

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