Angel broking is member of BSE, NSE, NCDEX and MCX. ARQ- Investment engine helps investors to get personalized advices. Angel Broking has one of the most efficient and last customer support base and is reachable on calls, email and even social media. They are constantly working towards the high-tech and efficient combination of trading and technology.
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Angel Broking, incorporated in the year1996, is one of India’s oldest stockbroking houses. In terms of the number ofactive clients on the National Stock Exchange (NSE), the company is thecountry’s fourth largest retail stockbroking house, with a market share ofaround 6.3% as of June 2020. With over 22 years of experience in the stockmarket industry, Angel Broking has succeeded in catering to a loyal client basecomprising around 2.15 million operational broking accounts (as of June 2020).
Now, the company is aiming to raiseadditional capital by putting its shares up for subscription by the public viaan Initial Public Offering (IPO). Angel Broking has filed its Draft Red HerringProspectus (DRHP) (Click here for more details)with the Securities and Exchange Board of India (SEBI). By issuing an IPO,Angel Broking would be adding another win to its already impressivescoreboard.
Details of the Angel Broking IPO
Here are the important details about theupcoming Angel Broking IPO issue.
The issue date
To be announced
The face value of the shares
The face value of the shares of AngelBroking is Rs. 10 per equity share.
The issue size
The total issue size of the upcoming AngelBroking IPO issue is likely to be around (xxx) shares. The IPO consists of afresh issue of shares amounting to (xxx) shares. It also comprises an Offer forSale (OFS) component through which the promoters of the company would offloadtheir existing shares. Under the OFS route, around (xxx) equity shares of thecompany are likely to be sold.
The price band
To be announced
The lot size and minimum orderquantity
To be announced
The listing of shares
To be announced
Why should you subscribe to the upcomingAngel Broking IPO?
Angel Broking has been on the broking andstock market scene for over 2 decades now and enjoys a strong brand value.Additionally, the IPO now comes at a time when the company is experiencingexceptional growth in its client base. That’s not all; here are some morecompelling reasons why you should consider subscribing to the Angel BrokingIPO.
1. India’s fourth largestretail broking house
Thanks to a market share of 6.3%, AngelBroking is currently India’s fourth largest retail broking house in terms ofthe number of active clients in the NSE platform. In addition to this, thecompany has also enjoyed an average monthly client addition of approximately115,565 clients in Q1 FY21 alone, as opposed to an average monthly clientaddition of 46,676 clients for the whole of FY20. This translates to animpressive growth rate of over 147.59%. With such tremendous growth, thecompany is well poised to climb up the ranks in the near future.
2. Exceptional brand equity
With more than 2 decades of experience andpresence in the stockbroking industry, ‘Angel Broking’ as a brand has garnereda significant amount of respect and brand equity. Over the years, the companyhas striven hard to build robust online and digital broking platforms to caterto the varying needs of its clients. ‘Angel Broking’, ‘Angel BEE’ and ‘ARQ’ areall well-recognized brands in the stock market scene.
In fact, the strong brand equity andpresence that Angel Broking commands in the industry has directly had an impacton the company’s client acquisition process. Among the average monthly clientadditions during the whole of FY20, around 11,249 clients were acquired by thecompany through referrals. This referral acquisition number increased to around23,942 clients per month in Q1 FY21, which serves only to reaffirm the level ofbrand equity enjoyed by the company.
3. Consistent growth overthe past few years
Angel Broking has been witnessingunprecedented levels of growth on all fronts. With respect to gross clientadditions, the company has seen consistent growth from around 0.22 million inFY18, 0.26 million in FY19, 0.56 million in FY20 to 0.35 million in FY21. Thisimpressive rise in the number of clients represents a 59.54% CAGR over theperiod from FY18 to FY20.
In addition to this, Angel Broking’s baseof active clients in the NSE platform also witnessed a rise from 0.36 millionin March, 2018, to 0.41 million clients in March, 2019, to 0.58 million clientsin March, 2020 and further to 0.77 million clients in June, 2020.
And finally, the company’s average dailyturnover has also seen a significant growth of around 144.47% in just a span ofa year from Rs. 253,176 million in Q1 FY20 to Rs. 618,945 million in Q1 FY21.
4. Diversified productportfolio that caters to a wide-range of clients’ needs
Over the years, Angel Broking has built astrong online and digital infrastructure with an increased focus on developingtechnology-driven processes and platforms. This has not only disrupted thestockbroking industry, but has also helped the company cater to the differingneeds and requirements of various clients.
Some of the class-leading digital tools andplatforms created by Angel Broking include the Angel Broking smartphone mobileapplication, web browser-based trading platform (trade.angelbroking.com), AngelSpeedPro, Angel BEE, and ARQ - A rule based investment engine. In addition tothese technological platforms, the company also provides a host of otherfinancial services such as investment advisory, investor education, researchservices, margin funding, loan against shares, and distribution of variousfinancial products to its clients.
5. High potential forfurther growth
As the penetration of internet andsmartphones continue to increase multi-fold in the country, a major chunk ofnew-age investors from Tier-2 and Tier-3 cities are making their way into thestock market. In fact, more than 450 million new investors have come fromTier-2 and Tier-3 Indian cities. This number is likely to only rise evenfurther in the coming years.
The changing market dynamics and shiftingconsumer base have opened up an extensive world of possibilities, which AngelBroking is perfectly poised to take advantage of using its pan-Indian customeroutreach and diversified digital platforms.
Considering these factors, Angel BrokingIPO looks to be a very attractive option for investors. By subscribing to thisissue, investors may experience impressive growth rates of up to 25%, as therecent IPOs have clearly shown us.