Angel Broking Ltd. is one of the largest independent full-service retail broking houses in India in terms of active clients on NSE as of June 30, 2020 (Source: CRISIL Report). They have a strong market presence with active clientele on the National Stock Exchange (NSE) with a market share of around 6.3% and 2.15 million operational broking accounts as of June 2020. Its broking services are offered through its online and digital platforms, and its network of more than 11,000 sub-brokers, as of June 30, 2020.
Angel Broking Ltd offers below mentioned products and financial services to the clients:
- Broking and Advisory
- Margin Trading Facility
- Loans against shares
- Research Services
|Objects of the issue||· To meet working capital requirements;
· General corporate purposes.
|Issue Size||Rs.600 Crore|
Rs.10 Per Equity Share
|Issue Price||Rs. 305 – Rs. 306|
|Bid Lot||49 shares|
BSE and NSE
|Issue Opens:||22nd September 2020 – 24th September 2020|
|QIB||50% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
|Retail||35% of Net Issue Offer|
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoters Group||55.20%||47.67%|
Source: DRHP, EWAL Research
One of the largest retail broking houses with strong brand equity with Significant market share in the cash and commodity segment.
Client acquisition through diversified digital platforms.
Integrated, end to end, and advanced digital experience ensuring client satisfaction.
Strengthen the leadership position to become the largest retail broking business in India.
Track record of continuous growth and strong financial performance.
New client activation has access to approximately 79.55 miliion persons as of June 30, 2020. its average daily turnover has been increased from ₹ 253,17.6 cr. in Q1 FY20 to ₹ 618,94.5 cr. in Q1 FY21.
The Consolidated Total Revenue from Operations was ₹ 238.42 crore, ₹ 724.62 crore, ₹ 757.98 crore, and ₹ 764.28 crore respectively.
In Financial Years 2018, 2019, 2020 and period ended June 30, 2020 revenue from brokerage income represented 61.34%, 63.95%, 66.77% and 72.21% of total income, respectively.
The Company faces various risks due to its reliance on third-party intermediaries, sub-brokers, vendors and service providers.
Lalit T. Thakkar, one of the members of the Promoter Group and one of the Selling Shareholders, has in the past been debarred from accessing capital markets.
A significant portion of Company’s revenue and income from brokerage business is derived from relatively few clients.
Angel Broking Limited is one of the largest independent full-service retail broking house in India in terms of active clients on NSE as of June 30, 2020 (Source: CRISIL Report). The Company provides a wide range of financial services to the clients including and in relation to Broking and Advisory & Other Financial Services. The Profit from Continuing Operations as restated was ₹ 48.26 crore, ₹ 86.79 crore, ₹ 83.40 crore and ₹ 109.79 crore respectively. The Return on Net Worth for equity shareholders (RoNW) for the period ended June 30, 2020 was 7.40% (not annualized) and Financial Year 2020 was 13.92%.Considering all factors and risk parameter of the company We would recommend Avoid rating to this IPO.
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more
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