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Angel Broking IPO Day 1: Issue subscribed 26%; retail quota booked 41%

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The Rs 600-crore initial public offering (IPO) of Angel Broking has been subscribed 26 percent so far on the first day of the bidding process Tuesday.

Angel Broking IPO Day 1: Issue subscribed 26%; retail quota booked 41%
The Rs 600-crore initial public offering (IPO) of Angel Broking has been subscribed 26 percent so far on the first day of the bidding process Tuesday.
The issue has received bids for 36.48 lakh equity shares against the offer size of 1.37 crore equity shares (excluding anchor book), according to the data available on exchanges.
The retail quota was subscribed by 41 percent but qualified institutional buyers and non-institutional investors have not started bidding yet.
The IPO of the fourth largest broking house in terms of active clients comprises a fresh issue of Rs 300 crore and an offer for sale aggregating to Rs 300 crore by promoters and investors.
The issue will close on September 24 while the price band has been fixed at Rs 305-Rs 306 per equity share.
The offer for sale comprises of Rs 18.33 crore worth of equity shares by promoter Ashok D Thakkar and Rs 4.5 crore worth of shares by Sunita A Magnani, and Rs 120 crore and Rs 157.16 crore worth of shares by investors IFC and individual selling shareholders, respectively.
The investors can bid for a minimum of 49 equity shares and in multiples of 49 shares thereafter. The equity shares are proposed to be listed on both National Stock Exchange and BSE Limited.
Motilal Oswal said that at the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which seems fairly priced.
“We 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. Hence, investors can Subscribe to the IPO,” the brokerage said.
However, risks will be revenue concentration, client concentration, highly competitive industry and legal/other proceedings against promoters, it added.
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