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Last Updated : Oct 05, 2020 10:05 AM IST | Source: Moneycontrol.com

Weak Listing: Angel Broking debuts at Rs 275, a 10% discount

The listing was in line with analysts' expectations citing valuations concerns, muted revenue growth despite robust client additions and rising competition in the broking industry.

 
 
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Angel Broking, one of the largest retail broking houses in terms of active clients on NSE, fell 10 percent at open on October 5, the first trading day.

The stock started off day at Rs 275 on the BSE, down by Rs 31 compared to issue price of Rs 306.

On the National Stock Exchange, Angel Broking shares opened with same 10 percent discount at Rs 275.

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At 10:02 hours IST, it was trading 9.41 percent down at Rs 277.20 on the BSE with volume of 1,63,271 shares and on the NSE, it was quoting at Rs 276.25, down 9.72 percent with volume of 12,68,384 shares.

The listing was in line with analysts' expectations citing valuations concerns, muted revenue growth despite robust client additions and rising competition in the broking industry.

Angel Broking has raised Rs 600 crore via public issue which was subscribed 3.94 times during September 22-24.

The net proceeds from fresh issue of Rs 300 crore would be utilised for working capital requirements and general corporate purposes, while the offer for sale money of Rs 300 crore less expenses will go to selling shareholders.

Company is a technology-led financial services entity 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.

The company provides broking and allied services through (i) online and digital platforms, and (ii) network of over 11,000 authorised persons as of June 2020. Company managed Rs 13,254 crore in client assets and over 21.5 lakh operational broking accounts as of June 2020.

"In my opinion, the brighter side for this industry is the shift of trading platform from offline to both online-offline which has also surged the revenues countered by full service brokers," Gaurav Garg, Head of Research at CapitalVia Global Research said.

Currently listed competitors for the company are Motilal Oswal Financial Services, JM Financial, IIFL Securities and ICICI Securiites.
First Published on Oct 5, 2020 09:59 am
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