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Published on 21/09/2020 12:27:06 PM | Source: Religare Broking Ltd

IPO Note - Angel Broking Ltd By Religare Broking

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About the Company

Angel Broking is the fourth largest retail broking houses in India in terms of active clients on NSE as of June 30, 2020, as per CRISIL Report and 2nd largest in terms of incremental NSE clients in Q1 - FY21. The company provides technology-led financial services such as broking and advisory services, margin funding, loans against shares (through one of its subsidiaries, AFPL) and financial products distribution to its clients. Its primary focus is to profitably grow their retail broking, margin funding and distribution businesses through its online and digital platforms such as “Angel Broking Mobile App”, “trade.angelbroking.com”, “Angel SpeedPro”, “Angel BEE”, which are powered by “ARQ”, a rule-based investment engine.

As of June 30, 2020, it manage Rs 132,540 mn in client assets and over 2.15 mn operational broking accounts with market share of ~6.3%. The company’s broking and allied services are offered through 1) online and digital platforms, and 2) Its network of over 11,000 sub-brokers. They have more than 4.39 mn downloads of Angel Broking mobile application and nearly 1 mn downloads of Angel BEE mobile application which enable its clients to avail digital services. Also its digital marketing has enabled company to garner 398 mn digital impressions on its various online platforms. It has customer spread across 18,649 pin codes in India.

 

Objects of the Issue

* To meet working capital requirements;

* General corporate purposes;

 

Valuation

According to the CRISIL Report, the financial market in India is expected to continue to grow in line with its historical trajectory, driven by strong demand and supply-side drivers, such as the expected growth in the Indian economy, increasing urbanization, more option for investments, availability of large amount of data and apps and increase in usage of digital platforms. In the last five years, there has been an increase in the amount of wealth invested in India in financial products as compared to traditional forms of investment.

We believe Angel Broking is well placed to capitalized opportunities in the capital market with well experienced management team, research capabilities, decent presence across digital platform ahead of peers and large cliental base. Further, opportunities in Indian financial market and good traction from retail participation would benefit the company in coming period. On valuation front, Angel Broking is valued at a P/E of 13x FY21 annualized EPS. Going forward, we remain positive on the company’s growth and so investors having long term view can subscribe to the issue.

 

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SEBI Registration number is INZ000174330

 

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