{"id":557,"date":"2020-09-22T12:25:03","date_gmt":"2020-09-22T12:25:03","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=557"},"modified":"2020-09-23T11:40:40","modified_gmt":"2020-09-23T11:40:40","slug":"angel-broking-ipo-is-it-worth-to-subscribe","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/angel-broking-ipo-is-it-worth-to-subscribe\/","title":{"rendered":"Angel Broking IPO. Is it worth to subscribe?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>September month is highly valued in the world equity markets\ndue to long saying that \u201cSell in May and Go Away, and come back on St. Leger\u2019s\nDay in mid-September. This claims for sell your equities in May and enter back\nin September. While, this year \u2018September\u2019 will be remembered for hasty\nlistings by Indian companies to get their name on the exchanges and achieve\nlisting benefits due to bullish market. Angel broking IPO is the 5<sup>th<\/sup>\nIPO in the month of September following the Happiest Minds, Route Mobile,\nComputer Age Management Services and Chemcon Speciality Chemicals. The Angel\nBroking is India\u2019s one of largest and oldest broking house having Rs. 132,540\nmillion in client assets as of June 30, 2020.<\/p>\n\n\n\n<p>The object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to 9,803,921 Equity Shares held by them of \u20b910 aggregating up to \u20b9300.00 Cr. The company has planned to raise fresh capital comprising an aggregate of 9,803,922 shares having \u20b910 aggregating up to Rs. 300 Cr at the upper price band of Rs. 306 which will be utilized for meeting working capital requirements while rest will be utilized for other corporate purposes.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Angel_Broking_IPO_Details\" title=\"Angel Broking IPO Details:\">Angel Broking IPO Details:<\/a><\/li><li><a href=\"#About_the_Company\" title=\"About the Company:\">About the Company:<\/a><\/li><li><a href=\"#Peer_Comparison\" title=\"Peer Comparison:\">Peer Comparison:<\/a><\/li><li><a href=\"#SWOC_Analysis\" title=\"SWOC Analysis:\">SWOC Analysis:<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Angel Broking IPO Details:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Angel Broking Ltd.<\/li><li>Industry: Financial Services<\/li><li>IPO Size: 600 cr.<\/li><li>Price Band: 305-306<\/li><li>Issue Open Date: 22 Sep, 20<\/li><li>Issue Close Date: 24 Sep, 20<\/li><li>Listing Date: 05 Oct, 20<\/li><li>Minimum Lot Size: 49 shares<\/li><li>Employee Discount: NA<\/li><li>Face Value: 10 RS. Per share<\/li><li>Retail Allocation: 35%<\/li><li>Listing Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the Company:<\/strong><\/h2>\n\n\n\n<p>India\u2019s one of oldest brokerage\nhouse covering customers reach of 96.87% or 18,649 pin codes in India and\nmanaging Rs. 132,540 million in client assets as of June 30, 2020. Since its\ninception in 1996, Angel Broking is a member of the Bombay Stock Exchange\n(BSE), National Stock Exchange (NSE), Metropolitan Stock Exchange of India\n(MSEI), NCDEX &amp; MCX. Angel Broking Limited (formerly known as Angel Broking\nPrivate Limited) is also registered as a Depository Participant with CDSL. The\ncompany has enhanced its client engagement after the incorporation of technology\nto all their services right from the launch of their mobile application for\nbroking services, KYC authentication and complete client on-boarding through\nthe electronic and digital medium in the year 2015 and 2016, respectively. The\ncompany has registered more than 4.39 million downloads of Angel Broking mobile\napplication.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Peer Comparison:<\/strong><\/h2>\n\n\n\n<p>There is a flood of competitors in the field of broking industry in India and broking companies go through tough competition. The broking companies in India don\u2019t have any control over pricing structure of the brokerages as they have to go deviate their pricing strategies and business model to compete with the peers. Moreover, the recent shift of investors and traders towards low brokerage firms has dampened their revenues. In the listed space, ICICI securities, Motilal Oswal, IIFL, Edelweiss, Geojit Financial Services and JM Financial have underperformed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>SWOC Analysis:<\/strong><\/h2>\n\n\n\n<p><strong>Strength: <\/strong>Themajor strengths of the company banks\nupon their footprints in96.87% or\n18,649 pin codes in India which describes their capacity of catering clients in\nall tier cities. The company has a long history in the field of broking since\nthe inception of derivative segment in India. The company has shifted their manual\noperations to technology-driven machine learning which embarks their ideology\nof upgradation as per the requirements of the broking industry.<\/p>\n\n\n\n<p><strong>Weakness: <\/strong>The\npresence of immense competition in the broking industry stands for real\nweakness of the company. The companies under the broking industry have no\ncontrol over the pricing of brokerage and other products. Moreover, the\nemergence of discount brokers has dampened their clientage and revenue\nstructure.<\/p>\n\n\n\n<p><strong>Opportunities: <\/strong><\/p>\n\n\n\n<p>Equity markets in Indian economy are highly less penetrated\nin comparison with western countries as people still rely upon channelizing\nfunds in banks for FDs and other deposits. However, people are realizing the\npotential of investing directly and through other indirect channels, which may\ncater many clients in the upcoming years. The regulatory body SEBI has opted\nvarious measure to inculcate more people in the field of investing through awareness\nprograms and more safety measures.<\/p>\n\n\n\n<p><strong>Threats:<\/strong><\/p>\n\n\n\n<p>There is no denying the fact that fundamentals and strong\nbackground will support the company in turbulent times but \u2018Race to Zero\u2019\nbrokerage, the upcoming culture of the investing and trading universe will baffle\ntheir revenue structure. Moreover, the recent Karvy stock broking scam has\nshifted many investors to brokerage houses which are managed by private sector\nbanks.<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 3,251<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"557\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">2    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>September month is highly valued in the world equity markets due to long saying that \u201cSell in May and Go Away, and come back on [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/angel-broking-ipo-is-it-worth-to-subscribe\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":559,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2],"tags":[],"class_list":["post-557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=557"}],"version-history":[{"count":5,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/557\/revisions"}],"predecessor-version":[{"id":564,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/557\/revisions\/564"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/559"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}