Angel One on March 26 said that it has launched a QIP (qualified institutional placement) issue at a floor price of Rs 2,555 per share. This is at nearly a discount of 7 percent on the current market price.
Shares of Angel One closed 3.36 percent higher at Rs 2,750 apiece on NSE today.
The purpose of this fund raise is to augment and build financial flexibility to grow the business and harness various emerging opportunities both within the existing and expanding broking business and across the inorganic universe within the fintech space, said the company in a stock exchange filing earlier.
The development comes after the leading broker announced last month that it will raise up to Rs 2,000 crore through preferential issue, QIP or other mode.
The company said its average daily orders have grown significantly from 0.5 million in FY20, when it turned digital, to 1.4 million in FY21, 2.8 million in FY22, 3.7 million in FY23 and further to 5.4 million in 10M FY24, with the average of January 2024 being 7.6 million.
"The investor base is continuously and significantly moving beyond the metros and tier 1 cities, to tier 2, 3, and 4 cities," Angel One had said earlier. It also said that it is under-penetrated and unrepresented in the capital markets in India. And there is a distinctive shift in long term wealth creation via equity assets, amongst large base of retail investors in India.
The company said it is on course to move beyond equity and mutual funds and will offer distribution of credit and fixed income products to its clients.
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