Last updated: 22 Sep, 2020 | 11:25 am
Angel Broking's IPO to raise up to ₹600 crore is now open for subscription. Here are the details.
Angel Broking operates in a market with a large number of players and heavy competition. Angel Broking is the fourth largest broker in terms of active clients on NSE with a market share of 6.3% as of June 2020. Zerodha has the largest share of around 16% followed by ICICI Securities and RKSV Securities. The chart below shows market share on players on the basis of active clients on NSE as at the end of Q1FY21.
Angel Broking is the 4th largest player in an industry where growth prospects look attractive. According to CRISIL, the financial market in India is expected to continue to grow in line with its historical trajectory, due to strong demand and supply-side drivers, such as expected growth in the Indian economy, increasing urbanisation, increased consumerism due to higher per capita incomes. Given its position, Angel Broking is well poised to take advantage of this potential growth, backed by digital and technology-led initiatives.
At the higher end of the price band, Angel Broking is available at a PE of about ~26.8 (based on FY20 earnings), which seems in line with listed peer ICICI Securities (PE of 28). Given factors such as robust growth potential, good return ratios, dividend payout history and reasonable valuations, we remain positive on this issue.