Coming Soon Angel Broking IPO
With multiple IPO’s lined up for the second half of 2020, Angel Broking’s IPO appears interesting candidate.
The company was incorporated in the year 1996, is one of India’s oldest stock broking houses. In terms of the number of active clients on the National Stock Exchange (NSE), the company is the country’s fourth largest retail stock broking 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) ( reference link - https://www.sebi.gov.in/filings/public-issues/jul-2020/angel-broking-limited-addendum-to-drhp_47089.html) with the Securities and Exchange Board of India (SEBI).
A few important milestones that Angel Broking has achieved in over 2 decades are - 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 also No.1 in terms of Authorised Persons with NSE. The company undertook Digital Transformation, launched a mobile application, introduced e-KYC Services and UPI in investing. They also launched a hyper-intelligent investment engine, ARQ. The digital transformation let to an increase in client acquisition through diversified digital platforms, with 85.21% the company’s clients having been acquired digitally.
The company has 398 million digital impressions in June 2020. Growth in average daily turnover from Rs. 253,176 million in Q1 FY20 to Rs. 618,945 million in Q1 FY21.
Not Just Digital transformation the company enjoys Exceptional brand equity. With more than two decades of experience and presence in the stock broking 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.
The other advantage of Angel Broking is that it is full service Broking Company with 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.
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 firms like Angel Broking is perfectly poised to take advantage of using its pan-Indian customer outreach and diversified digital platforms.
So it would be interesting to see how the company performs in times to come especially with increased competition from likes of discount brokers.