Angel One, a leading brokerage firm, has initiated a Qualified Institutional Placement (QIP) issue with a floor price of Rs 2,555 per share, representing a nearly 7% discount on the current market price.
The move aims to raise funds to bolster its financial capabilities and capitalize on emerging opportunities within both its existing broking business and the broader fintech sector.
Shareholders of Angel One approved the QIP issuance at an extraordinary general meeting held earlier this month, signaling confidence in the company’s growth prospects.
The decision to raise funds comes amidst a surge in the company’s client base and heightened activity across various derivative and cash products. Angel One reports a sustained need for increased working capital to effectively manage the growing volumes of orders executed on its platform. Notably, the company’s average daily orders have exhibited robust growth, rising from 0.5 million in FY20 to 7.6 million in January 2024.
Angel One highlights a significant demographic shift in its investor base, with a substantial movement beyond metro and tier 1 cities to tier 2, 3, and 4 cities. The company emphasizes its under-penetration and underrepresentation in the Indian capital markets, noting a distinct trend among retail investors towards long-term wealth creation through equity assets.
In addition to its core equity and mutual fund offerings, Angel One plans to diversify its product portfolio by offering distribution services for credit and fixed income products to its clients, expanding its reach and providing further avenues for wealth creation.