Angel Broking slides 10% on market debut after weak response to IPO

The Angel Broking stock settled nearly 10 per cent lower than its issue price on its debut. It closed at Rs 276 on Monday, compared to the initial public offering (IPO) price of Rs 306.

The last instance of an IPO listing at a discount was that of SBI Cards, in March. It, too, had ended 10 per cent lower amid the turbulence caused by the pandemic. 

Since then, most IPOs have listed at a huge premium to their issue price. Angel Broking’s weak debut follows the relatively subdued response to its IPO. The discount broking firm’s Rs 600-crore IPO had garnered 4x subscription.

It had raised Rs 300 crore through the IPO, which it plans to use for meeting working capital requirements and for general corporate purposes.

It managed Rs 1,325 crore in client assets and over 21.5 million operational broking accounts as of June 30, 2020. 

According to the offer documents, the number of operational accounts increased from 1.06 million in March 2018 to 1.82 million in March 2020 and 2.15 million in June 2020.