Angel Broking is launching its IPO, The size of the public issue is around Rs. 600 crores, the issue comprises of issuance of fresh equity shares as well as Offer for Sale.
About the Company
Angel Broking is one of the largest broking houses in India, along with broking the company also provides other services like advisory, margin funding, loan against shares, and research services. With about 0.9 million active clients according to NSE, the company has a market share of about 6.3% which makes them the fourth largest broker in India.
About the Industry
The domestic broking industry’s revenue registered a growth of 10.5% CAGR over fiscals 2015-2020, to reach an estimated Rs 225 billion on account of a 34% increase in turnover in equity (cash and derivatives of NSE, BSE) markets during the same period.
Rising Demand for Financial Products
With increasing financial literacy, mobile penetration, awareness, and opening up of Jan Dhan bank accounts, the demand for financial products from smaller cities has increased exponentially. Financial services including lending and broking services are today available in most of the 19,252 pin codes across India.
Capital Markets an Attractive Part of Financial Savings
The proportion of shares and debentures in overall household savings has increased steadily since fiscal 2013 and stood at 3.1% in fiscal 2018.
Increasing investor interest in derivatives has led to a sharp increase in the turnover of equity derivatives markets. Equity derivative markets have outpaced the cash markets, clocking 35% CAGR over fiscals 2015-2020. The share of equity derivatives in total market turnover has increased to more than 97% from 94% during the period.
FPIs account for only 15-20% of overall volume in derivatives while DIIs have a negligible presence in the derivatives segment as key institutions such as mutual funds are not allowed to write options contracts and norms stipulate that their exposure to option premium paid must not exceed 20% of the net assets of the scheme. The highest share is of the others category – including individual investors, HUFs, Trusts, NRIs, etc. accounting for 38% in fiscal 2020 and proprietary trades accounting for 33% of the equity derivatives turnover in NSE which is the major contributor of equity derivatives turnover.
With increasing retail participation both in equity cash and derivatives segments, the average daily turnover clocked a strong growth of 34% CAGR over fiscals 2015-2020, mainly led by derivatives.
Rising Investors
Mutual fund folios that were active as of fiscal 2020 have nearly more than doubled from the end of fiscal 2015 levels growing at a CAGR of 16.5%. The number of active accounts held in NSDL and CDSL has also seen an increase of 7.45% and 18.2% CAGR respectively up to June 2020.
Number of active accounts in CDSL (million)
Number of active accounts in NSDL (millions)
The share of active user accounts for CDSL has increased from 41% as of 31st March 2015 to 54% as of 30th June 2020 surpassing NSDL in fiscal 2020.
For more information, you can read the IPO Prospectus filed by the company.
Indicative Timetable
| Event | Date |
|---|---|
| Issue Period | 22 Sep 2020 - 24 Sep 2020 |
| Price Range | 305- 306 |
| Minimum Bid Quantity | 49 |
| Finalisation of Allotment | 29th Sep 2020 |
| Initiation of Refunds | 30th Sep 2020 |
| Credit of Shares | 1st Oct 2020 |
| Listing | 5th Oct 2020 |
| Mandate end date | 10th Oct 2020 |
How do I apply for the Angel Broking IPO?
You can apply for the Angel Broking IPO on Console using any supported UPI app.
Once you have entered your bid on Console, you will receive a mandate collect request on your UPI app. On acceptance of the mandate, the bid amount will get blocked in your bank account. Read more.