Angel Broking IPO – Full Analysis
Company Details
Angel Broking is one of the largest independent full-service retail broking houses in India, in terms of active clients on NSE as of 30 June 2020. It is a technology led financial services company offering broking and advisory services, margin funding, loans against shares (through AFPL) and financial products distribution. Its broking services are offered through (i) online and digital platforms, and (ii) network of more than 11,000 Authorised Persons, as of 30 June 2020. The company has more than 4.39 million downloads of its Angel Broking mobile app and nearly 1 million downloads of Angel BEE app as of 30 June 2020. Through digital marketing, the company has been able to cover approximately 96.87% or 18,649 pin codes in India and manages INR132,540 million (INR13,254 crore) in client assets and over 2.15 million operational broking accounts as of 30 June 2020.
Angel Broking Ltd offers some of the key products and financial services to the clients:
Company Promoters
Promoters of Angel Broking – Dinesh D Thakkar, Ashok D Thakkar, Sunita A Magnani
Issue Details
| Angel Broking IPO details | |
| Subscription Dates | 22 – 24 September 2020 |
| Price Band | INR305 – 306 per share |
| Fresh issue | INR300 crore |
| Offer For Sale | INR300 crore |
| Total IPO size | INR600 crore |
| Minimum bid (lot size) | 49 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Company Financials
| Angel Broking’s financial performance (in INR crore) | ||||
| FY2018 | FY2019 | FY2020 | Q1 FY2021 | |
| Revenue | 780.0 | 784.1 | 754.7 | 246.6 |
| Expenses | 620.0 | 655.9 | 635.9 | 182.0 |
| Net income | 107.3 | 79.6 | 81.4 | 46.9 |
| Net margin (%) | 13.8 | 10.2 | 10.8 | 19.0 |
All Important Dates
IPO Opening Date: 22 September 2020
IPO Closing Date: 24 September 2020
Finalisation of Basis of Allotment: 29 September 2020
Initiation of refunds: 30 September 2020
Transfer of shares to demat accounts: 1 October 2020
Listing Date: 5 October 2020
Angel Broking IPO Grey Market Premium
The Angel Broking Limited IPO Grey Market Premium price is 100-120, the Kostak rate is 300 and the Subject to Sauda is NA.
Angel Broking Growth in Technology
The primary focus is to profitably grow the retail broking, margin funding and distribution businesses through the online and digital platforms, “Angel Broking App”, “trade.angelbroking.com”, “Angel SpeedPro”, “Angel BEE”, which are powered by “ARQ”, a rule-based investment engine. They believe that they are positioned to benefit from the development of the Indian financial market, increased emphasis on digitalisation, and growth in the returns from such financial investments.
Angel Broking has received several awards and accolades for the services and products, including ‘Best performing retail member – Pan India 2016-17’ Award at Market Achievers Awards organised by NSE, one of the ‘Top Volume Performers in Equity Retail Segment 2016-17’ by BSE, the ‘Fulcrums of Commodity Derivatives Market’ Award by MCX in 2018 and the ‘Best Technology House of the Year’ in 2016 at the ASSOCHAM Excellence Awards. They provide a wide range of financial services to the clients including and in relation to:
Competitive Strengths of Angel Broking Limited:
- One of the largest retail broking houses with strong brand equity
- Client acquisition through diversified digital platforms
- Integrated, end to end, and advanced digital experience ensuring client satisfaction
- Diversified product offering across segments at competitive price
- Robust business metrics building operating leverage
- Experienced management team with proven execution capabilities
Angel Broking Limited IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- One of the largest retail broking houses with strong brand equity
- Ensuring client satisfaction through the implementation of advanced technology and digitalisation
- Strong client base through their online and digital platform and sub-broker network
- Significant market share in the cash and commodity segment
- Track record of continuous growth and strong financial performance
- Proven and experienced management team and execution strength
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-18 | 14.91 | 22.61 | – |
| Mar-19 | 11.09 | 15.02 | – |
| 31-Mar-20 | 11.44 | 13.92 | 82.15. |
Industry P/E Ratio:
| Particulars | P/E ratio |
| Highest | 54.7 |
| Lowest | 5.4 |
| Average | 24.1 |
Angel Broking Competitive Peers
| Particulars | Face Value (in Rs.) | EPS (In Rs.) | NAV (In Rs.) | P/E Ratio | RONW |
| Angel Broking | 10 | 11.44 | 82.15 | NA | 13.92 |
| PEERS | |||||
| ICICI Securities | 5 | 16.8 | 37.5 | 28.4 | 44.32 |
| Geojit Financial | 1 | 2.0 | 23.8 | 19.4 | 8.91 |
| IIFL Holdings | 2 | 7.3 | 27.5 | 5.7 | 26.39 |
| Motilal Financial | 1 | 12.2 | 210.9 | 56.0 | 4.15 |
| JM Financial | 1 | 6.5 | 96.7 | 12.6 | 9.69 |
Angel Broking Limited IPO Lead Managers
| BOOK RUNNING LEAD MANAGERS |
| ICICI Securities Limited Edelweiss Financial Services Limited SBI Capital Markets Limited |
Angel Broking Limited IPO Registrar to offer
| Registrar to the Offer |
| Link Intime India Private Limited C-101, 1st floor, 247 Park, Lal Bahadur Shastri Maarg Vikhroli (West), Mumbai 400 083 Tel: +91 22 4918 6200, Fax: +91 22 4918 6195 E-mail: angel.ipo@linkintime.co.in Investor Grievance E-mail: angel.ipo@linkintime.co.in Website: www.linkintime.co.in Contact Person: Shanti Gopalkrishnan SEBI Registration No.: INR000004058 |
Angel Broking Limited IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
Analysis
The most important point to remember is how Angel Broking has grown in numbers, during the Covid 19 pandemic – during the Covid lockdown period, angel Broking has opened around one lakh Demat accounts every month and live trading has increased in leaps and bounds. This shows that the trading population has faith and trust in the Angel brand and that’s what pushing the grey market premium of Angel Broking Shares. There are unconfirmed reports that the shares could see around 20% listing gain on the listing date itself. Angel Broking’s Digital outreach in recent times have ensured that they stay up-to-date with the latest in Trading Technology and provide the best trading solution.
