Angel Broking started their journey at the stock market on Monday, the start was not really strong as it got listed at ₹ 275 at National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The company issue price was ₹306 and the scrip got a poor start.
Angel Broking started their IPO and sold from 22nd September to 24th September. Angel Broking manages around 21.5 lakh active broking account and their client assets are ₹13,254 crores. There broking’s brokerage income in FY20 accounted for 69.54% of their overall revenue, revenue from the other sources like portfolio management services and depository operations was 30.46% of the whole revenue in FY20.
Angel Broking holds a valuation of 26.84 times, at the issue price in FY2020 earning.
Chemcon Speciality Chemicals Ltd also listed at the same time with Angel Broking and could not continue the momentum after getting a rise of 23% at the open. CAMS also got listed on Thursday and closed at a 13.95 % premium to its issue price of ₹1,401.60. Chemcon IPO was subscribed 149 times and CAMS was 46.99 times, where Angel Broking was mere 3.94 times subscribed.
Many market experts and research agencies said that they don’t see much during the listing day of the stock, and believe that the largest retail broking houses in India may not impress the investors on the first day at the exchange despite having a strong client base.
Angel Broking has outperformed in terms of additions of clients to their portfolio but because of the tough competition in the market, it’s going to be a difficult task for them to maintain the growth. The broking agency has done well in the recent past and expected to continue the momentum.