Angel One will raise up to Rs 2000 crore through preferential issue, QIP or other modes, said the company on February 22.
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.
"The equity fund raise plan of up to Rs 2,000 crore will allow the company to enhance its ability to invest beyond the current resources at hand, besides allowing it to maintain fiscal prudence in its journey to make Angel One a leading fintech platform," said the company.
On Thursday, Angel One's stock closed trading 0.5 percent lower at Rs 3,072.35 on the National Stock Exchange.
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," said the company. 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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