Angel broking IPO : Subscribe or NOT?

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Angel Broking – the fourth largest broking firm in India as per active client accounts on NSE. The company provides its services through online and digital platforms on the back of a network of more than 11,000 sub-brokers as on June 30, 2020.

Offer purpose — 600cr offer for sale + fresh issue. 40% will be used for working capital requirement by company

Key Service domains – provides broking and advisory services, margin funding , loans against shares and financial products distribution to its clients.

Clients -80% from tier 2 and tier 3 cities

Revenues from Key Services–75% from broking. 10% from Margin funding

Risks

The company’s main revenue source is the broking business, and company has not diversified into wealth management kind of services

Intense competition in broking business

Extensive supervision and regulation by various regulatory bodies that may cause fluctuation in earnings e.g. recently SEBI margin trading rule

Future

Flat fee-based model, a developing derivatives market, the use of modern technology, lower penetration of mutual funds and shares and debentures in household savings and customer acquisition through digital medium enable the company to scale up its business easily.

Digital acquisition of customers will save cost

Valuations

Little on higher side.

Should we apply?

Moderate chances of allotment due to small size.

People can avoid to subscribe

Listing day may see see moderate gains . Recommended to book profits if any on listing day

Also Read

CAMS IPO crisp summary

Happiest Minds IPO crisp summary –Listing with substantial gains

Route Mobile IPO crisp Summary — Listing with substantial gains

Rossari biotech IPO detailed summary –Listed with substantial gains

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

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#Marathoner#Investor #Cyclist #Foodie#Traveler #Helping people in finances to fitness

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