Angel Broking
Mainboard₹600 Cr issue
-10.13%
Listing gain over issue price
Issue size
₹600 Cr
1 lot at cut-off
₹14,994
Lot size
49shares
Open
22 Sep 2020
Close
24 Sep 2020
Allotment
29 Sep 2020
Listing
05 Oct 2020
Listing performance
Issue price
₹306
Listed at
₹275
Listing-day close
₹275.85
Latest price
—
Listing gain
-10.13%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Sep 2020 – 24 Sep 2020
- Listing date
- 05 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹306 per share
- Lot size
- 49 shares
- Total issue size
- ₹600 Cr
- ISIN
- INE732I01013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Edelweiss Financial Services Ltd.
- Registered office
- G-1, Ground Floor, Akruti Trade Centre,, Road No. 7, MIDC,, Andheri (East), Mumbai 400 093, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 58,82,352 | — | — |
Application size
Minimum 49 shares per lot, in multiples, at ₹306
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 49 | ₹14,994 |
| Retail (max) | 13 | 637 | ₹1,94,922 |
| S-HNI (min) | 14 | 686 | ₹2,09,916 |
| S-HNI (max) | 66 | 3,234 | ₹9,89,604 |
| B-HNI (min) | 67 | 3,283 | ₹10,04,598 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
58,82,352
Anchor portion
₹180 Cr
at ₹306 per share
Valuation and performance
Valuation at offer price
₹306 per share
| Metric | Pre-issue | Post-issue |
|---|
About Angel Broking
Angel Broking Limited, incorporated in 1996 and converted to a public company in 2018, operates as a diversified financial services provider. The company was originally incorporated as M. BNL. Securities Private Limited and underwent multiple name changes before becoming Angel Broking Limited. It operates through retail brokerage services across equity, commodity, derivatives and currency segments; distribution of third-party financial products; wealth management; portfolio advisory services; and insurance broking. As of June 30, 2020, the company had 2.15 million operational broking accounts with 0.81 million active traders. The company earns revenue primarily from brokerage commissions, distribution commissions, interest income from margin funding, and advisory fees.
Company Analysis
from RHPAngel Broking Limited is a financial services company providing broking services, distribution of financial products, and wealth management solutions across India's capital markets.
Angel Broking Limited, incorporated in 1996 and converted to a public company in 2018, operates as a diversified financial services provider. The company was originally incorporated as M. BNL. Securities Private Limited and underwent multiple name changes before becoming Angel Broking Limited. It operates through retail brokerage services across equity, commodity, derivatives and currency segments; distribution of third-party financial products; wealth management; portfolio advisory services; and insurance broking. As of June 30, 2020, the company had 2.15 million operational broking accounts with 0.81 million active traders. The company earns revenue primarily from brokerage commissions, distribution commissions, interest income from margin funding, and advisory fees.
Financial servicesSecurities brokingWealth managementInsurance distributionPortfolio advisory services
Objects of the Issue
- Working capital requirements p.41
- Working capital requirements and general corporate purposes Net Proceeds from Fresh Issue of ₹3,000.00 million (exact allocation not specified in this section) p.46
- To meet working capital requirements ₹2,300.00 million p.108
- General corporate purposes ₹531.70 million p.108
- General corporate purposes 3,000.00 million p.528
Issue Structure
- Total Issue
- ₹ 6,000.00 million
- Fresh Issue
- ₹ 3,000.00 million (9,803,921 equity shares)
- Offer for Sale
- ₹ 3,000.00 million (9,803,914 equity shares)
- Price Band
- ₹ 305 (Floor Price) to ₹ 306 (Cap Price) per equity share
- Lot Size
- 49 equity shares and in multiples of 49 equity shares thereafter
- Face Value
- ₹ 10 per equity share
Business Model
Angel Broking earns revenue through multiple streams: (1) Brokerage income from commissions on securities trading across exchanges; (2) Distribution commissions from selling third-party financial products including mutual funds and insurance; (3) Interest income from margin lending and financing products offered to clients; (4) Advisory fees from portfolio management and wealth advisory services; (5) Other fees from ancillary services. Brokerage income represented 61.34% of total income in FY 2018, 63.95% in FY 2019, 66.77% in FY 2020, and 72.21% for the six months ended June 30, 2020.
Business Segments
Provides retail broking services across equity, commodity, derivatives and currency segments through electronic platform and dealer helpdesks
Distributes third-party financial products including mutual funds, insurance and other financial products through authorised persons, dealer helpdesks and digital platforms
Provides portfolio advisory services, wealth management, and research recommendations through platforms like ARQ and Angel Platinum
Provides broking services across equity (cash-delivery, intra-day, futures and options), commodity and currency segments, along with debt products. Facilitates participation in initial public offerings. Provides research services through a dedicated team of 54 members. Offers investment advisory services aided by the rule-based investment engine 'ARQ'. Provides investor education through website and digital mediums.
Provides margin trading facility to clients for leveraging their eligible collaterals by funding their requirements on the cash delivery segment of equities, with securities forming collateral for such funding.
Undertakes distribution of third-party financial products such as mutual funds, and health and life insurance products through both offline channels and digital platforms. Provides personal wealth management services to clients.
Through its Subsidiary AFPL, which is registered as an NBFC, provides loans against shares to retail clients.
Provides broking services across equity (cash-delivery, intra-day, futures and options), commodity and currency segments, along with debt products. Facilitates participation in IPOs and includes investment advisory services through dedicated teams and mobile applications powered by ARQ (a rule-based investment engine).
Provides margin trading facility to clients to leverage eligible collaterals by funding requirements in cash delivery segment of equities, subject to stock exchange mandated margins. Margin money and underlying securities form collateral.
Undertakes distribution of third-party financial products including mutual funds, health and life insurance products to clients. Earns commissions from third parties based on contribution to their AUM or linked to insurance premiums.
Offers loans against shares through subsidiary AFPL (registered as NBFC) to retail clients based on approved list of securities and RBI prescribed margin regulations.
Stock broking, margin trading facility, depository services and distribution of mutual funds and IPOs
Delayed payment charges on margin trading and interest income on fixed deposits held under lien with stock exchanges
Includes broking, advisory, product distribution, margin trading facility and other fee based services
Income from financing and investment income
Income from fitness center operations
Commission income from executing equity, currency and commodity trades for clients
Income from depository related services and operations
Fees from managing investment portfolios for clients
Fees from providing investment advisory services to clients
Income from distribution of financial products
Broking, advisory, third party product distribution, margin trade facility and other fee based services including equity, commodity and currency broking, research services, investment advisory powered by ARQ, investor education, margin trading facility, financial products distribution, and loans against shares
Income from financing and investment activities including interest from margin trading and loan portfolio and investment income
Income from fitness center operations (discontinued as of June 23, 2020)
Stock broking and trading services including buying, selling and dealing in securities, derivatives, and commodities across multiple exchanges
Margin trading facility, lending activities, and interest on delayed payments
Depository participant services for dematerialized securities
Mutual fund distribution, insurance distribution, portfolio management services, investment advisory services
SWOT Analysis
Strengths
- • Established brand and market presence(p.31)
- • Large and growing client base with significant operational reach(p.31)
- • Diversified product and service offerings across multiple segments(p.39)
- • Extensive authorised persons and digital referral network(p.31)
- • One of the largest retail broking houses with strong brand equity and pan-India reach(p.63)
- • Strong client acquisition growth and market share expansion(p.64)
- • Diversified digital client acquisition channels with strong performance marketing(p.64)
- • Robust business metrics and operating leverage(p.66)
- • Experienced management team with deep industry expertise(p.66)
- • Integrated end-to-end digital platforms and advanced technology infrastructure(p.65)
- • Competitive pricing and diversified product offering(p.66)
- • One of the largest retail broking houses with strong brand equity(p.115)
- • Advanced technology and digitalisation platform implementation(p.115)
- • Strong client base through online/digital platform and authorized persons network(p.115)
- • Significant market share in cash and commodity segments(p.115)
- • Track record of continuous growth and strong financial performance(p.115)
- • Proven and experienced management team and execution strength(p.115)
- • Largest retail broking house with strong brand equity and extensive geographic reach(p.176)
- • Exceptional client acquisition growth and market share gains(p.177)
- • Advanced digital-first technology platform with multiple integrated channels(p.178)
- • Diversified client acquisition channels including digital marketing and influencer partnerships(p.177)
- • Experienced management team with deep industry expertise(p.179)
- • Strong operational metrics with robust business infrastructure and trading capacity(p.179)
- • Competitive flat pricing model with value-added services(p.178)
- • Strong research and investment advisory capabilities(p.186)
- • Consistent industry recognition and awards for broking excellence(p.209)
- • Largest distribution network in equity broking(p.209)
- • Recognition as leading retail equity broker(p.209)
- • Technology and digital platform leadership(p.209)
- • Fintech innovation recognition(p.210)
- • Employee workplace culture(p.210)
- • Strong management team with significant industry experience(p.220)
- • Diversified financial services portfolio across broking, lending, and allied services(p.305)
- • Multiple exchange memberships and regulatory registrations(p.305)
- • Strong revenue growth and profitability(p.300)
- • Significant shareholder concentration indicating founder confidence and alignment(p.310)
- • One of the largest retail broking houses in India by active clients(p.487)
- • Extensive digital platform and mobile app penetration(p.487)
- • Wide geographic reach across India(p.487)
- • Significant managed client assets and operational accounts(p.487)
- • Over two decades of industry experience(p.487)
- • Large network of authorized intermediaries(p.490)
- • Proprietary technology platforms and investment engine(p.487)
Weaknesses
- • Heavy concentration of revenue from brokerage business(p.28)
- • Significant client concentration risk(p.41)
- • High employee attrition and workforce turnover(p.40)
- • Promoter debarment from capital markets(p.23)
- • High leverage with substantial debt obligations(p.42)
- • Extensive litigation and regulatory proceedings(p.25)
- • IT infrastructure and cybersecurity vulnerabilities(p.27)
- • High dependence on brokerage income from limited customer base(p.43)
- • Promoter guarantees creating personal liability exposure(p.43)
- • Negative cash flows from operations in recent years(p.47)
- • Dependence on dealer helpdesks, authorised persons and DRAs for business growth(p.43)
- • Missing or untraceable corporate records creating historical uncertainty(p.47)
- • Conflicts of interest with related-party subsidiaries and group companies(p.44)
- • Certain historical corporate records not traceable, including share transfers to promoters(p.95)
- • Dependence on significant working capital requirements and bank borrowings(p.109)
- • Exposure to regulatory constraints on indebtedness for margin trading if net worth ratios exceeded(p.109)
- • Declining PAT margin despite revenue growth(p.175)
- • Significant dependence on equity market turnover and trading activity(p.179)
- • High customer acquisition costs with rising marketing expenses(p.177)
- • Uncertain trademark registrations with oppositions from third parties(p.191)
- • Margin trading book concentrated and exposed to market volatility(p.188)
- • Group companies with accumulated losses and negative net-worth(p.237)
- • Loss-making subsidiary operations(p.238)
- • High dependence on a limited number of major shareholders(p.259)
- • Significant short-term borrowings obligation(p.263)
- • Pending income tax disputes(p.253)
- • High operational leverage with substantial finance costs and interest expenses(p.334)
- • Significant outstanding disputed income tax demands creating contingent liability exposure(p.341)
- • Concentration of trade payables indicating dependence on client funding(p.316)
- • History of fraud requiring recovery efforts from employees(p.289)
- • Losses from discontinued health and fitness business operations(p.300)
- • High concentration of disputed tax liabilities across multiple assessment years(p.397)
- • Significant impairment loss on investment in subsidiary business(p.379)
- • High concentration of trade receivables from single customer type with time-value losses(p.403)
- • Exposure to interest rate risk on variable rate borrowings(p.402)
- • High concentration of collateralized lending with limited diversification(p.404)
- • Significant reliance on margin trading facility loans as primary lending product(p.440)
- • High short-term debt maturity profile requiring frequent refinancing(p.404)
- • Substantial increase in trade payables creating working capital pressure(p.404)
- • Dependence on broking and MTF revenue as substantial portion of total income(p.489)
- • Significant personnel expense burden(p.490)
- • Discontinued fitness business operations(p.479)
- • Significant disputed tax liabilities pending resolution(p.460)
- • Significant contingent liabilities and disputed tax demands(p.526)
- • High reliance on margin trading facility revenue which is declining(p.518)
- • Significant litigation exposure from customer disputes(p.534)
- • Debt-to-equity ratio deterioration before offer(p.528)
- • Material accounting provisions for client default on crude oil futures(p.516)
- • Extended legal proceedings with SEBI regarding market conduct violations(p.535)
Opportunities
- • Expansion into new market segments and product categories(p.40)
- • Growth in digital financial services adoption(p.27)
- • Increasing household savings and investment trends(p.22)
- • Broking sector positioned as relatively resilient amid economic downturn(p.58)
- • Expansion through digital influencers and DRA partnerships(p.65)
- • Growing client base in Tier 3 and beyond cities representing untapped markets(p.65)
- • Expected economic recovery and GDP growth trajectory post-COVID(p.58)
- • Expansion of distribution and financial services business(p.63)
- • Equity broking industry expected to log 11-12% CAGR over next five years(p.142)
- • Growth driven by increased retail participation and turnover volumes of 23-25% CAGR(p.142)
- • Significant penetration opportunity in B30 cities with growing financial services demand(p.125)
- • Low demat account penetration at ~3% of population provides ample scope for additions(p.141)
- • Rising household financial savings and shift from physical to financial assets(p.128)
- • Growing mobile and internet penetration supporting digital trading adoption(p.145)
- • Value-added services as key differentiator in competitive market(p.145)
- • Expansion into tier 2 and tier 3 cities with growing retail investor base(p.177)
- • Wealth management and advisory services expansion to HNI/UHNI segments(p.180)
- • Growing mutual fund distribution market with retail penetration opportunities(p.188)
- • Expanding digital influencer network for client acquisition(p.178)
- • Growing opportunities in Portfolio Management Services segment(p.166)
- • Capitalizing on increased retail participation and equity market growth(p.168)
- • Opportunity to strengthen market leadership position through organic and inorganic growth(p.179)
- • Integration of commodity broking with stock broking(p.211)
- • Expansion through subsidiary operations in wealth and financial advisory(p.214)
- • Growth through digital and technology platforms(p.210)
- • Franchise expansion opportunity(p.210)
- • Growth in market share through strategic business expansion and synergies(p.342)
- • Expansion of retail investment and broking services through multiple revenue channels(p.331)
- • Growing lending and NBFC business opportunity with significant asset base(p.331)
- • Depository and mutual fund distribution as growing revenue streams(p.331)
- • Recognition as essential service enabling continuous operations during lockdown(p.406)
- • Growth in depository services revenue(p.423)
- • Portfolio management services expansion(p.423)
- • Growing Indian equity capital markets and retail participation(p.489)
- • Increased emphasis on digitalization in financial services(p.487)
- • Cross-selling opportunities to existing client base(p.490)
- • Growing digital and online trading adoption(p.490)
- • Expansion of product offerings and distribution channels(p.488)
- • Growth in client base and ADTO expansion(p.515)
- • Shift to digital offerings and cost optimization(p.519)
- • Diversification of revenue streams beyond brokerage(p.512)
- • Expansion of depository operations income(p.518)
Threats
- • COVID-19 pandemic impact on business continuity and economy(p.21)
- • General economic and market downturn affecting trading volumes(p.22)
- • Intense competitive pressure from established and new entrants(p.30)
- • Regulatory changes and supervisory requirements(p.23)
- • Pressure on brokerage fee rates and commission levels(p.28)
- • Interest rate volatility and financing cost increases(p.32)
- • Dependence on third-party intermediaries and service providers(p.33)
- • Currency and foreign exchange fluctuation risks(p.19)
- • External financial system shocks and systemic risk(p.49)
- • Economic recession and adverse macroeconomic factors beyond company control(p.49)
- • Natural or man-made disasters impacting operations and markets(p.49)
- • Adverse changes in India's sovereign credit rating(p.50)
- • Competition law enforcement creating uncertain regulatory environment(p.50)
- • Tax law changes and regulatory uncertainties(p.50)
- • Civil unrest, terrorism, and geopolitical instability(p.49)
- • Covid-19 pandemic causing economic contraction and market volatility(p.120)
- • Downturn or market volatility can reduce retail investor flows into capital markets(p.156)
- • Increased regulatory pressure on commissions and potential transition to advisory models(p.156)
- • Rising competitive intensity from various categories of brokers eroding yields(p.145)
- • Currency and commodity broking at nascent stage with limited market development(p.156)
- • India's sovereign credit rating one step away from junk status(p.155)
- • Deep global recession risk or geopolitical tensions impacting markets(p.155)
- • Intense competition from established players and aggressive new entrants(p.190)
- • Regulatory risks from evolving SEBI regulations and compliance requirements(p.165)
- • Dependency on equity market volatility and trading volumes for revenue(p.181)
- • Risk of client churn and commoditization of broking services(p.165)
- • Technology and cybersecurity risks with increasing digital exposure(p.189)
- • Rising competitive pressure from low-cost/discount brokers(p.160)
- • Potential impact of passive fund managers and discount brokers on traditional distribution model(p.165)
- • Regulatory changes affecting business model(p.211)
- • Contingent liabilities from unresolved tax disputes(p.253)
- • Dependence on IFC shareholder with put and call options(p.212)
- • Regulatory scrutiny and tax litigation across multiple assessment years(p.341)
- • Dependence on market volatility and trading volumes for core brokerage revenue(p.331)
- • Interest rate and monetary policy changes affecting lending and borrowing costs(p.334)
- • Significant contingent liabilities from client arbitrations and bank guarantees(p.341)
- • Competition and market consolidation pressures in broking industry(p.305)
- • Regulatory and litigation risk inherent in broking operations(p.365)
- • Claims against the company in ordinary course of business(p.397)
- • Exposure to external economic pressures affecting brokerage and gym business(p.379)
- • Material uncertainty from COVID-19 pandemic affecting economic and market conditions(p.406)
- • Regulatory framework requirements for minimum capital and compliance(p.421)
- • Expected credit loss exposure on margin trading loans despite collateral backing(p.404)
- • Dependency on stock exchange performance and market volatility(p.423)
- • Significant competition from established and new brokers(p.490)
- • Competitors with greater financial resources and brand recognition(p.490)
- • Risk of rapid competitive adoption and pricing pressure(p.490)
- • Dependence on Indian equity market performance and activity(p.489)
- • Exposure to general economic and market conditions(p.489)
- • COVID-19 pandemic impact on capital markets and business(p.480)
- • Market volatility and adverse commodity price movements(p.516)
- • Regulatory actions and SEBI enforcement proceedings(p.536)
- • Decline in lending book due to weak market conditions(p.518)
- • COVID-19 lockdown impact on client lending book(p.524)
- • General economic downturn affecting brokerage volumes(p.518)
- • Exposure to regulatory scrutiny on KYC and account opening procedures(p.537)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dinesh D. Thakkar | Promoter | — | — |
| Ashok D. Thakkar | Promoter Selling Shareholder | — | — |
| Sunita A. Magnani | Promoter Selling Shareholder | — | — |
| Dinesh D. Thakkar | Promoter | 16,768,805 Equity Shares (23.29% of pre-Offer issued capital) | — |
| Ashok D. Thakkar | Promoter | 3,199,920 Equity Shares | — |
| Sunita A. Magnani | Promoter | 750,000 Equity Shares | — |
| IFC (International Finance Corporation) | Investor Selling Shareholder | — | — |
| Dinesh D. Thakkar | Promoter | 23.29% | 20.50% |
| Ashok D. Thakkar | Promoter | 4.44% | 3.91% |
| Sunita A. Magnani | Promoter | 1.04% | 0.74% |
| Lalit T. Thakkar | Promoter Group | 12.41% | 8.68% |
| Deepak T. Thakkar | Promoter Group | 4.72% | 3.29% |
| Nirwan Monetary Services Private Limited | Promoter Group | 8.42% | 7.41% |
| Dinesh D. Thakkar | Promoter | — | — |
| Ashok D. Thakkar | Promoter | — | — |
| Sunita A. Magnani | Promoter | — | — |
| Dinesh D. Thakkar | Promoter | 23.29% | — |
| Ashok D. Thakkar | Promoter | — | — |
| Sunita A. Magnani | Promoter | — | — |
| Dinesh Thakkar | Promoter/Chairman and Managing Director | 23% | — |
| Lalit Thakkar | Promoter/Director | 13% | — |
| International Finance Corporation, Washington | Promoter Group | 18% | — |
| Nirwan Monetary Services Pvt. Ltd. | Promoter Group | 8% | — |
| Mukesh Gandhi jointly with Bela Gandhi | Promoter Group | 8% | — |
| Nishith Shah Jointly with Jitendra Shah | Promoter Group | 6% | — |
| Dinesh Thakkar | Promoter/Chairman and Managing Director | 23% | — |
| International Finance Corporation, Washington | Promoter Group | 18% | — |
| Lalit Thakkar | Promoter/Director | 13% | — |
| Nirwan Monetary Services Private Limited | Promoter Group | 8% | — |
| Mukesh Gandhi jointly with Bela Gandhi | Promoter Group | 8% | — |
| Dinesh Thakkar | Promoter | 23% | — |
| International Finance Corporation, Washington | Promoter | 18% | — |
| Lalit Thakkar | Promoter | 13% | — |
| Nirwan Monetary Services Private Limited | Promoter Group | 8% | — |
| Mukesh Gandhi jointly with Bela Gandhi | Promoter Group | 8% | — |
| Nishith Shah Jointly with Jitendra Shah | Promoter Group | 6% | — |
| Dinesh D. Thakkar | Promoter | — | — |
| Ashok D. Thakkar | Promoter | — | — |
| Lalit T. Thakkar | Promoter/Promoter Group | — | — |
| Sunita A. Magnani | Promoter | — | — |
Leadership
Dinesh D. Thakkar · Promoter
Ashok D. Thakkar · Promoter
Sunita A. Magnani · Promoter
Naheed Patel · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Angel Broking IPO FAQs
What is the lot size of Angel Broking IPO?
The minimum lot size of Angel Broking IPO is 49 shares. One lot costs ₹14,994 at the cut-off price.
When does Angel Broking IPO open and close?
Angel Broking IPO opened for subscription on 22 Sep 2020 and closed on 24 Sep 2020.
What is the listing date of Angel Broking IPO?
Angel Broking IPO listed on 05 Oct 2020.