Objective of Ipo launch
The objective of IPO lauch is to meet working capital requirement and general corporate purposes. They are planning to raise the capital of 600 crores via IPO. The fresh issue will be of Rs 300 crore and offer for sale of Rs 300 crore by promoters and investors.
Strengths of Angel broking
-Angel broking is one of the oldest and top stock broker in India has a market share of 6.3% and 2.15 million active accounts as on june 2020 so on it holds the 4th position in the top stock brokers list.
-If we see the number of adding new clients per year then it is quite good. They added 2.2 lakhs, 2.6 lakhs, 5.6 lakhs new clients in FY18, FY19, FY20 and they have already added 3.5 lakhs new clients in Q1 FY21.
-From Q1 FY2020 to Q1 FY2021, the average daily turnover has been increased from Rs. 2,53,176 million to Rs. 6,18,945 million which is an increase or 144%.
-Total assets and total revenue of the company is 21,592.05 million and 7,427.79 million as on 31st march 2020.
-The company has 8500+ sub brokers and franchisee outlets in more than 900 cities in the country.
-They work in Pan India.
Tentative dates-
22 sep. 2020 - The IPO will be available for subscription.
24 sep. 2020 - Offer will be closed.
29 sep. 2020 - Finalization of basis of allotment.
31 sep. 2020 - Initiation of refund.
01 oct. 2020 - Credit of shares to demat account.
05 oct. 2020 - IPO listing date.
Angel Broking IPO details
Issue type; Book built issue IPO
Issue size; Rs. 600 crore
Fresh Issue; Rs. 300 crore
Offer for sale; Rs. 300 crore
Face value; Rs. 10 per equity share
Market lot; 49 shares per lot
IPO price; Rs. 305-306 per equity share
Listing; At BSE and NSE
If you want to buy this IPO, the minimum you can buy is 1 lot and you have to pay Rs 14,994 for it and maximum you can buy is 13 lots for which you have to pay is Rs. 1,94,922.
Promoters of the company
Dinesh D. Thakkar, Ashok D. Thakkar and Sunita A. Magnani are the promoters of the company. 65% stake of the company are held by the promoters of the company.
Key products and services of the company
1. Broking and advisory
2. Margin trading facility
3. Investor education
4. Loans against equity
5. Research services
Financials of the company ( All figures are in million )
What are the risk factors if you are looking for the investment?
1. Highly regulated industry.
Stock broking industry is the highly regulated industry in India. SEBI use to make regular changes in the broking policies. Recently on 1 september SEBI had announced new margin rules for the stock brokers which may effect the revenue and profits or the stock brokers. So most of the time the changes don't come in the favour of the stock brokers.
2. Competition
As we already discussed above that there are more than 300 stock brokers in India in which number one position is held by zerodha. And due to the discount brokers came into the market the margin ratio became too less. And as you know where the competition is too high it is too difficult to survive and generating profit to run the operation even for the good companies.
3. Direct buy or sell from stock exchanges
Recently I have heard some rumors that in future the investors can buy or sell a stock directly on stock exchanges. If it happens then stock broking industry will be in danger. If you have any opinion about this please comment down.
4. Increasing discount brokers in India
Competition is already very high in the stock broking industry in India still there are many new brokers coming into play with attractive services which is creating difficulties for the existing stock brokers. So existing stock brokers will need to update themselves time to time otherwise it will difficult for them to survive in this industry.
5. Market volatility
We all know that stock market is too volatile we never know that when a bad situation occurs (like covid-19 ) and the investors start to exiting the market. And in the end if the market will loose the investors it will directly impact on the revenue of the stock brokers.
Also read : Investing expectations vs reality
Final say...
In this article I didn't give you any advice of buying or selling.
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