Angel Broking IPO to open on September 22; price band set at Rs 305-306

Angel Broking, one of the largest retail broking houses in India, is set to launch its initial public offer on September 22, 2020.

The company, in consultation with merchant bankers, has fixed IPO price band at Rs 305-306 per share.

Angel Broking plans to raise Rs 600 crore via IPO which consists of a fresh issue of Rs 300 crore and offer for sale of Rs 300 crore by promoters and investors.

The offer for sale comprises a Rs 18.33 crore and Rs 4.5 crore worth of equity shares by promoters Ashok D Thakkar and Sunita A Magnani respectively, and Rs 120 crore and Rs 157.16 crore by investors IFC and individual selling shareholders respectively.

The public issue will close on September 24, while anchor investors' bidding date will be September 21, i.e. one working day prior to the offer opening date.

Bids can be made for a minimum of 49 equity shares and in multiples of 49 shares thereafter.

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 clients.

The company has witnessed consistent growth in customerbase with gross client addition of 2.2 lakh, 2.6 lakh, 5.6 lakh and 3.5 lakh in FY18, FY19, FY20 and Q1 FY21, respectively. In the quarter that ended in June 2020,Angel Broking witnessed an average monthly client addition of approximately 1,15,565, over a monthly average of 46,676 clients in FY20 representing a growth of 147.59 percent.

In Q1 FY21, 85.21 percent of clients have been acquired digitally and remaining 14.79 percent through a network of over 11,000 authorised persons.

Angel Broking is the fourth largest broker in terms of active clients on NSE with a market share of 6.3 percent as of June 2020. Zerodha Broking has the largest share of around 16 percent followed by ICICI Securities (around 9.2 percent) and RKSV Securities (around 6.4 percent).

The company manages Rs 13,254 crore in client assets and over 2.15 million operational broking accounts as of June 2020.

Angel Broking would be the eighth public issue in 2020 after SBI Card, Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds, Route Mobile, CAMS and Chemcon Speciality Chemicals.

Equity shares are proposed to be listed on both National Stock Exchange and BSE Limited.

ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are appointed as book-running lead managers to the issue. Link Intime India is the registrar to the issue.