In India, Angel Broking is a popular name among the retail broking houses. It was incorporated in the year 1986. They engaged in the business of broking and advisory services, margin funding, as well as the distribution of financial products. Besides this, they have their own research service and investment advisory. Angel Broking is going to launch their IPO for the first time. In this post, you will get to know about the Angel Broking IPO Review, Issue Date, DRHP, Price, all details.
Angel Broking FAQs
Entrepreneur Dinesh Thakkar started his business in 1987 with a capital of Five Lakhs Indian Rupees and lost half of the money within eight months. In 1989, he started off again as a sub-broker. Later, Angel Broking was incorporated as a wealth management, retail and corporate broking firm in December, 1997.
Even today, Angel Broking has an offline presence of around 10,000 offices across different parts of India. Thus, from the experience in the industry perspective as well, calling Angel Broking safe won’t be incorrect.
Broking firms like Angel Broking charge a very minimal amount of zero brokerage on Equity Delivery Trading & ₹20/order Flat Brokerage for Intraday, F&O, Currencies & Commodity.
No, currently you cannot do BTST in Angel Broking.
Angel Broking IPO Details
| IPO Date | Sep 22, 2020 – Sep 24, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | [.] Eq Shares of ₹10 (aggregating up to ₹600.00 Cr) |
| Fresh Issue | [.] Eq Shares of ₹10 (aggregating up to ₹300.00 Cr) |
| Offer for Sale | [.] Eq Shares of ₹10 (aggregating up to ₹300.00 Cr) |
| Face Value | ₹10 per equity share |
| IPO Price | ₹305 to ₹306 per equity share |
| Market Lot | 49 Shares |
| Min Order Quantity | 49 Shares |
| Listing At | BSE, NSE |
Angel Broking IPO Promoter Holding
| Pre Issue Share Holding | 65.42% |
| Post Issue Share Holding |
- Tentative Open Date: 9th Sept 2020
| Segment | Year ended | Quarter ended | Month ended | Quarter ended | ||||||||
| 2018 | 2019 | 2020 | Q1 FY20 | Q2 FY20 | Q3 FY20 | Q4 FY20 | 03/20 | 04/20 | 05/20 | 06/20 | Q1 FY21 | |
| ADTO – Overall | 1,23,103 | 1,68,087 | 4,13,238 | 2,53,176 | 3,58,268 | 4,50,070 | 5,82,018 | 4,25,900 | 4,44,460 | 5,41,200 | 8,28,850 | 6,18,945 |
| Overall Equity Market share | 3.24% | 3.02% | 5.41% | 3.68% | 4.68% | 5.91% | 6.90% | 6.41% | 6.83% | 7.56% | 9.55% | 8.23% |
| ADTO – Cash | 16,793 | 21,382 | 29,262 | 25,548 | 26,609 | 31,734 | 32,995 | 30,440 | 48,580 | 56,340 | 66,640 | 57,813 |
| Market Share – Cash(1) | 8.51% | 10.90% | 13.73% | 12.70% | 13.75% | 14.33% | 14.03% | 11.89% | 16.09% | 18.36% | 17.26% | 17.26% |
| ADTO – F&O | 88,662 | 1,24,074 | 3,39,729 | 1,98,080 | 2,90,353 | 3,69,478 | 4,92,468 | 3,46,360 | 3,65,270 | 4,30,120 | 7,00,300 | 5,11,080 |
| Market Share – F&O | 2.90% | 2.68% | 5.14% | 3.38% | 4.42% | 5.62% | 6.67% | 6.16% | 6.34% | 7.02% | 9.16% | 7.77% |
| ADTO – Commodity | 15,055 | 19,379 | 37,285 | 24,584 | 33,475 | 41,807 | 48,643 | 38,260 | 20,490 | 42,420 | 47,850 | 37,754 |
| .Market Share – Commodity (1) | 8.82% | 10.04% | 16.90% | 12.39% | 14.48% | 19.09% | 20.88% | 18.01% | 20.28% | 25.34% | 25.96% | 24.60% |
Angel Broking Limited – Comany Overview
Angel Broking is a technology led financial services company, that provides broking and advisory services, margin funding, loans against shares (through one of the Subsidiaries, AFPL) and financial products distribution to the clients under the brand “Angel Broking”. The broking services are offered through (i) the online and digital platforms, and (ii) the network of more than 11,000 sub-brokers, as of June 30, 2018.
They have more than 850,000 downloads of the Angel Broking mobile app and more than 450,000 downloads of the Angel BEE app as of June 30, 2018, which enables the clients to avail the services digitally. Through the network of sub-brokers and over 110 branches, we have a pan-India presence across 1,800 cities and towns, as of June 30, 2018. As at June 30, 2018, the Company managed Rs. 113,023.06 million in client assets and over 1.11 million active broking accounts.
It’s digital transformation helped it being the 4th Largest company in terms of active NSE clients and 2nd largest in terms of incremental NSE clients in Q1 – FY21. Angel Broking being a pioneer in new client activation has access to approximately 79.55 miliion persons as of June 30, 2020. From Q1 FY20 to Q1 FY21, its average daily turnover has been increased from Rs. 253,176 million to Rs. 618,945 million.
Angel Broking Ltd offers some of the key products and financial services to the clients:
1. Broking and Advisory
2. Margin Trading Facility
3. Investor Education
4. Loans against shares
5. Research Services
Competitive Strengths of Angel Broking Limited:
- One of the largest retail broking houses with strong brand equity
- Ensuring client satisfaction through the implementation of advanced technology and digitalization
- Strong client base through the online and digital platform and sub-broker network
- Significant market share in the cash and commodity segment
- Track record of continuous growth and strong financial performance
- Proven and Experienced Management Team and Execution Strength
Business strategies of Angel Broking Limited:
- Diversify and expand the retail client base
- Continuously developing the implementation of technology and enhancing digital infrastructure
- Establish a leadership position in the investment advisory space
- Capitalisation of the growing investable wealth in India
Company Financials:
| Particulars | For the year/period ended (₹ in Million) | |||
|---|---|---|---|---|
| 30-June-18 | 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Total Assets | 19,206.78 | 22,721.27 | 15,412.52 | 9,288.77 |
| Total Revenue | 1,978.24 | 7,522.6 | 4,714.0 | 3,813.05 |
| Profit After Tax | 255.37 | 1,018.5 | 206.98 | 254.84 |
Angel Broking IPO Review
First of all, take a look at the above financials. In financial year 18, the company has made a pretty good return. But, the gap in the return between the two financial years is quite big. So, it is advisable to look carefully into it. In addition, let’s check the DRHP (draft red herring prospectus) details. Therefore, the EPS (earnings per share) is at 1.20 (FY19). They have not released their PE ratio yet. However, the company’s RoNW (return on net worth) and NAV/share are 9.49 and 12.64 consequently.
Moreover, you may look at the GMP (grey market premium) and Kosak rate from our site.
As per our recommendation and other top brokers’s suggestions, Angel Broking IPO Review is POSITIVE. Investors can be profitable from a long term perspective.