Angelbroking IPO

Angel Broking, incorporated in the year 1996, is one of India’s oldest stockbroking houses. In terms of the number of active clients on the National Stock Exchange (NSE), the company is the country’s fourth largest retail stockbroking house, with a market share of around 6.3% as of June 2020. With over 22 years of experience in the stock market industry, Angel Broking has succeeded in catering to a loyal client base comprising around 2.15 million operational broking accounts (as of June 2020).

Now, the company is aiming to raise additional capital by putting its shares up for subscription by the public via an Initial Public Offering (IPO). Angel Broking has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). By issuing an IPO, Angel Broking would be adding another win to its already impressive scoreboard.

Details of the Angel Broking IPO

IPO Issue Date

To be announced

Price Band

To be announced

Listing of Shares

To be announced

Lot Size & Min. Order Qty

To be announced

The issue size: The total issue size of the upcoming Angel Broking IPO issue is likely to be around (xxx) shares. The IPO consists of a fresh issue of shares amounting to (xxx) shares. It also comprises an Offer for Sale (OFS) component through which the promoters of the company would offload their existing shares. Under the OFS route, around (xxx) equity shares of the company are likely to be sold.

Why should you subscribe to the upcoming Angel Broking IPO?

Angel Broking has been on the broking and stock market scene for over 2 decades now and enjoys a strong brand value. Additionally, the IPO now comes at a time when the company is experiencing exceptional growth in its client base. That’s not all; here are some more compelling reasons why you should consider subscribing to the Angel Broking IPO.

  • India’s fourth largest retail broking house — Thanks to a market share of 6.3%, Angel Broking is currently India’s fourth largest retail broking house in terms of the number of active clients in the NSE platform. In addition to this, the company has also enjoyed an average monthly client addition of approximately 115,565 clients in Q1 FY21 alone, as opposed to an average monthly client addition of 46,676 clients for the whole of FY20. This translates to an impressive growth rate of over 147.59%. With such tremendous growth, the company is well poised to climb up the ranks in the near future.
  • Exceptional brand equity — With more than 2 decades of experience and presence in the stockbroking industry, ‘Angel Broking’ as a brand has garnered a significant amount of respect and brand equity. Over the years, the company has striven hard to build robust online and digital broking platforms to cater to the varying needs of its clients. ‘Angel Broking’, ‘Angel BEE’ and ‘ARQ’ are all well-recognized brands in the stock market scene.
    — In fact, the strong brand equity and presence that Angel Broking commands in the industry has directly had an impact on the company’s client acquisition process. Among the average monthly client additions during the whole of FY20, around 11,249 clients were acquired by the company through referrals. This referral acquisition number increased to around 23,942 clients per month in Q1 FY21, which serves only to reaffirm the level of brand equity enjoyed by the company.
  • High potential for further growth — As the penetration of internet and smartphones continue to increase multi-fold in the country, a major chunk of new-age investors from Tier-2 and Tier-3 cities are making their way into the stock market. In fact, more than 450 million new investors have come from Tier-2 and Tier-3 Indian cities. This number is likely to only rise even further in the coming years.
    — The changing market dynamics and shifting consumer base have opened up an extensive world of possibilities, which Angel Broking is perfectly poised to take advantage of using its pan-Indian customer outreach and diversified digital platforms.
  • Diversified product portfolio that caters to a wide-range of clients’ needs — Over the years, Angel Broking has built a strong online and digital infrastructure with an increased focus on developing technology-driven processes and platforms. This has not only disrupted the stockbroking industry, but has also helped the company cater to the differing needs and requirements of various clients.
    — Some of the class-leading digital tools and platforms created by Angel Broking include the Angel Broking smartphone mobile application, web browser-based trading platform (trade.angelbroking.com), Angel SpeedPro, Angel BEE, and ARQ - A rule based investment engine. In addition to these technological platforms, the company also provides a host of other financial services such as investment advisory, investor education, research services, margin funding, loan against shares, and distribution of various financial products to its clients.
  • Consistent growth over the past few years — Angel Broking has been witnessing unprecedented levels of growth on all fronts. With respect to gross client additions, the company has seen consistent growth from around 0.22 million in FY18, 0.26 million in FY19, 0.56 million in FY20 to 0.35 million in FY21. This impressive rise in the number of clients represents a 59.54% CAGR over the period from FY18 to FY20.
    — In addition to this, Angel Broking’s base of active clients in the NSE platform also witnessed a rise from 0.36 million in March, 2018, to 0.41 million clients in March, 2019, to 0.58 million clients in March, 2020 and further to 0.77 million clients in June, 2020.
    — And finally, the company’s average daily turnover has also seen a significant growth of around 144.47% in just a span of a year from Rs. 253,176 million in Q1 FY20 to Rs. 618,945 million in Q1 FY21.
  • Conclusion — Considering these factors, Angel Broking IPO looks to be a very attractive option for investors. By subscribing to this issue, investors may experience impressive growth rates of up to 25%, as the recent IPOs have clearly shown us.

Angelbroking Milestones

The “Angel Broking” brand, established over 22 years ago, has over the years built an online and digital broking and financial services platform, with a pan-India presence. They provide broking, margin funding, advisory and financial services through the brands “Angel Broking” and “Angel BEE”, powered by “ARQ”, which are well-recognized brands in the retail broking industry in India and are capable of addressing the financial investment and risk mitigation requirements of Indian retail clients.

They have a strong brand presence using a targeted strategy of offering services under different brands to cater to a diverse group of clients. They are well placed to capitalize on the expected growth in the broking sector in India due to our advanced digital presence, pricing, and early mover advantage in providing broking, financial and advisory services through both, our online and offline channels.

Important Milestones

  • Angel Broking is the 4th Largest in terms of NSE Active Clients, 2nd largest in terms of incremental NSE Active Clients in Q1 - FY21
  • Angel Broking is No.1 in terms of Authorised Persons with NSE
  • Undertook Digital Transformation, launched a mobile application, introduced e-KYC Services and UPI in investing
  • Launched a hyper-intelligent investment engine, ARQ
  • 398 million digital impressions in June 2020
  • For Angel Broking IPO Press Release - Click Here
  • Client acquisition through diversified digital platforms, with 85.21% the company’s clients having been acquired digitally
  • Growth in average daily turnover from Rs. 253,176 million in Q1 FY20 to Rs. 618,945 million in Q1 FY21
  • Access to approximately 79.55 million persons as of June 30, 2020 through digital influencers
  • Pioneer in new client activation, with the ‘Trade in One Hour’ service facilitating client activation in record time
  • For RHP - Click Here

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