Angel Broking IPO subscribed 2x so far on Day 3; retail portion at 3.4x

The offer received bumper response from retail investors who have subscribed the issue 3.4 times so far on Day 3 of the issue. However, the IPO failed to get any subscription from QIBs

The Rs 600-crore initial public offering of Angel Broking was subscribed nearly 2 times on the National Stock Exchange (NSE) and BSE on Wednesday, the last day for bidding. 

Till 12:30 pm, the issue was subscribed 1.77 times on the exchanges, data show. The IPO has received bids for 2.43 crore equity shares against an offer size of 1.37 crore equity shares, the data available on exchanges showed.

The offer received bumper response from retail investors who have subscribed the issue 3.4 times so far on Day 3 of the issue. However, the IPO failed to get any subscription from Qualified Institutional Buyers (QIB). Besides, HNI portion has been subscribed 0.36 times so far.

The brokerage firm, which intends to to utilise the net proceeds to meet working capital requirements and general corporate purposes, garnered nearly Rs 180 crore from anchor investors on September 21. It allocated more than 58.8 lakh shares to the anchor investors at a price of Rs 306 apiece, according to a regulatory filing. 

Angel Broking's IPO opened on Tuesday, September 22, and consisted of a fresh issue of Rs 300 crore and offer for sale (OFS) of Rs 300 crore by promoters and investors.

Analysts at Anand Rathi Shares and Stock Broekrs had given 'Subscribe' rating to the offer given fair valuation. Priced at around 26.84x FY20 earnings at the upper price band, the brokerage believed the IPO and OFS is fairly priced at current price band, considering its financial performance and growth prospects.

2:15pm update

Angel Broking IPO update