Angel Broking, one of the largest retail broking houses in India, proposed to utilise the net proceeds to meet working capital requirements and general corporate purposes. The brokerage houses like Angel given its leading position in retail broking, robust technology platform, and innovative offerings. Considering the sharp rise in retail participation and ongoing industry challenges, top players are likely to gain market share. Meanwhile, revenue concentration, client concentration, highly competitive industry, and legal/other proceedings against promoters remain key risks for the company, Motilal Oswal Securities said in its IPO note.
Antique Stock Broking said that Angel Broking, recently transformed from full-service retail broker to discount broker, presents a unique dilemma - on the one hand, India's financialisation story has never been stronger and more durable, while on the other hand, the IPO pricing demands peak valuations at the time of whole new retail investors wave in the equity markets.
This forces us to focus more on the risks rather than opportunities and more on the valuation rather than its ability to capture customers at a rapid pace. "Hence, despite being very constructive on India's financialisation theme, we believe that investors should wait for better price points," the brokerage said.