The initial public offer of Angel Broking has been subscribed 3.9 times on September 24, the final day of bidding, backed by retail investors.
The Rs 600-crore IPO has received bids for 5.4 crore equity shares against an offer size of 1.37 crore equity shares, the data available on exchanges showed.
The anchor book, which was already subscribed and closed on September 18, was excluded from the offer size mentioned above. The company garnered Rs 180 crore from anchor investors at higher end of price band of Rs 305-306 per share.
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The issue, so far, has largely been supported by retail investors whose reserved portion has been subscribed 4.3 times and that of non-institutional investors 69 percent, while the portion set aside for qualified institutional buyers witnessed 5.73 times subscription.
The IPO consists a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore by promoters and investors.
Incorporated in 1996, Angel Broking is one of the largest independent full-service retail broking house in India in terms of active clients. The company was initially incorporated as M BNL Securities. Dinesh D Thakkar, Ashok D Thakkar and Sunita A Magnani are the promoters of the company.
Ajcon Global likes the company due to Angel's dominant presence in Indian retail broking space.
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"At the upper end of price band of Rs 306, the issue is valued at a P/E of 31x at post IPO FY20 EPS. We believe the issue is priced at a premium owing to its dominance in retail broking space and technology edge over traditional brokers, improved performance even in COVID-19 era and improving client base owing to its focus on technology," the brokerage said.
The brokerage recommended subscribing to the issue for listing gains.
Angel is a technology-led financial services company providing broking and advisory services, margin funding, loans against shares (through one of the subsidiaries AFPL) and financial products distribution to clients under the brand Angel Broking.
It has a strong market presence with active clientele on the National Stock Exchange (NSE) with a market share of around 6.3 percent and 2.15 million operational accounts as of June 2020.
Digital transformation has helped it being the fourth largest company in terms of active NSE clients and second 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 million subscribers through partnered Digital Referral Associates (DRAs) as of June 30, 2020.
From Q1 FY20 to Q1 FY21, its average daily turnover has been increased from Rs 25,300 crore to Rs 61,900 crore. The company has strong capabilities to acquire customers through diversified digital platforms. In Q1 FY21, 85.21 percent of clients have been acquired digitally and remaining 14.79 percent are acquired through network of authorized persons.
"The robustness and scalability of its digital ecosystem was also tested during Q1 FY21 as they experienced an increase of 2.48 times, 2.21 times and 1.96 times in its average daily logins on their mobile application, average daily traded clients and average fund transfer during this period respectively," Ajcon Global said.
Angel Broking is going to use fresh issue funds for working capital requirements and general corporate purposes, while the company will not receive any proceeds from the offer for sale.