Chemcon Speciality Chemicals IPO subscribed 12.65 times on second day

Marco Green
September 23, 2020

Each share was sold at Rs 306.

The IPO of Angel Broking is be the eighth public issue in 2020 after SBI Cards, Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds, Route Mobile, CAMS and Chemcon Speciality Chemicals.

Angel Broking has raised ₹180 crore from 12 anchor investors, including Goldman Sachs India, Macquarie Fund Solutions, Invesco Trustee among others to name a few. We believe Angel Broking Ltd. IPO and OFS is fairly priced at current price band, considering its financial performance and growth prospects.

Angel Broking IPO comprises fresh issuance of shares worth ₹300 crore and offer for sale of ₹300 crore by promoters and other shareholders. The brokerage firm has fixed the price band of the share sale at Rs 305-Rs 306 per share. It was placed at 4th rank in market share amongst leading players in the industry with the consistent growth in a number of NSE active clients which were at 0.77 million as on June 20.

Intensive Fiscal Services and Ambit Capital are the managers to the offer.

In FY20, Angel Broking had reported revenues of ₹754 crore with net profit at ₹81 crore.

Another brokerage Anand Rathi has recommends subscribe. Hence, investors can Subscribe to the IPO. The ICICI Direct report said the company might face concentration risks.

"At the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which is seems fairly priced", Motilal Oswal said in a note. ABL's strategy to focus on leveraging digital platforms for client acquisition has started yielding benefits. 5paisa Capital, a discount broker launched by IIFL in 2015, is trading at valuation of P/BV of 6.7x as compared to ABL's P/BV of 2.7x. 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. It is a technology-led financial services company providing broking and advisory services, margin funding, loans against shares (through one of the subsidiaries AFPL), and financial product distribution to clients under the brand Angel Broking.

Other reports by Click Lancashire

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