Angel Broking to launch Rs 600-cr initial public offering next week

The IPO comprises Rs 300 crore fresh fund raise, and another Rs 300 crore secondary share sale
Angel Broking will launch its Rs 600-crore initial public offering (IPO) next week. The country’s fifth-largest broker in terms of the number of active clients has set the price band for the issue at Rs 305-306 per share.

At the top-end, Angel Broking will have a market cap (m-cap) of Rs 2,503 crore. The IPO comprises of Rs 300-crore fresh fund raise and another Rs 300-crore secondary share sale by existing shareholders, including International Finance Corporation (IFC), a World Bank arm.

Angel Broking will look to ride the boom in the broking industry seen this financial year. Ease of account opening, the work-from-home phenomena, and surge in the market has led to a spurt in opening of new investor accounts at brokerages. Since April, more than 5 million new demat accounts have been opened with depository firms CDSL and NSDL. Angel Broking, along with Zerodha and Upstox have grabbed the biggest share of new accounts opened since then.

All three are positioned as low-cost brokerages. Angel, under one of its plans, charges zero brokerage for delivery-based trades in the cash segment and flat Rs 20 per order for all other segments.

Besides broking, Angel Broking generates revenues from advisory services, margin funding, loans against shares, and distribution of financial products.

It manages Rs 1,325 crore in client assets and over 21.5 million operational broking accounts as of June 30.

ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are the book-running lead managers for the IPO. The IPO will only be the eighth this calendar year.

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