Capital markets brokerage firm Angel Broking today announced its Rs 600-crore IPO, ostensibly hoping to ride on the buoyant response that investors have given to the recent initial public issues. The IPO, which will open for subscription next week, will include a fresh issue of Rs 300 crore, and an offer for sale (OFS) of Rs 300 crore from existing investors of the firm. Angel Broking plans to use the funds raised through the issue for general corporate purposes and to fulfill the capital requirements of the company. The price band for the issue has been fixed at Rs 305-306 per share.
The IPO will open on Tuesday, September 22, and will close on Thursday, September 24. The offer will make up 24% of the post issue paid up capital of the company. The Rs 300 crore OFS will include sale of equity shares worth Rs 120 crore from International Finance Corporation (IFC), which invested in Angel Broking over a decade ago for an 18% stake. Qualified Institutional Buyers (QIB) will get to subscribe to 50% of the equity shares on offer, while Non-institutional investors will get 15% of the issue and Retail investors will have 35% of the issue available for subscription. The bid lot for retail investors will be of 49 equity shares and in multiples thereafter.
Angel Broking said it is one of the major retail brokers in the country with 151% CAGR growth rate in client addition. The company accounts for a 14.7% share in incremental Demat accounts. Angel Broking has, over the last few years, seen growth in its broking income. In the previous financial year the firm managed to generate a Rs 503 crore revenue from broking and an overall revenue of Rs 754 crore. In the previous quarter, Angel Broking’s net profit was already half of what it made in the previous fiscal year. The top five stock brokers in India account for nearly half of the trading on NSE. The company has an average daily turnover of Rs 61,900 crore in the first quarter of the fiscal year.
Recently, equity markets have witnessed a positive response to IPOs. Happiest Minds Technologies IPO was subscribed 151 times by investors with a strong interest from retail investors. Along with that Route Mobile’s IPO was also subscribed over 73 times. Both the issues were fully subscribed on the very first day of the issue opening for subscription. Angel Broking will be the eighth IPO this year.
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