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

Angel-Broking-Ltd

Issue Details
Objects of the issue ·         To meet working capital requirements;

·        General corporate purposes.

 

Issue Size  Rs.600 Crore
Face value  

Rs.10 Per Equity Share

Issue Price Rs. 305 – Rs. 306
Bid Lot 49 shares
Listing at  

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

Financial Performance:

Financial-Performance

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Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 55.20% 47.67%
Public& Others 44.80% 52.33%

Source: DRHP, EWAL Research

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Strengths:

  • 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.

Key Highlights:

  • 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.

Risk Factors:

  • 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.

Outlook:

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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