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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.