At 10:01 am, the stock was trading at Rs 270, down 12 per cent against the issue price. It has touched a low of Rs 256.60 and high of Rs 278.55 on the BSE so far. On the NSE, the stock hit a high of Rs 279 and a low of Rs 257, exchange data shows. A combined around 1.35 million equity shares have changed hands on the counter on the BSE and NSE, so far.
The Rs 600-crore initial public offering (IPO) of Angel Broking was subscribed nearly four times. The portion reserved for retail investors was subscribed 4.31 times, while quota for non-institutional investors was filled in 69 per cent. The portion for qualified institutional buyers (QIBs) was subscribed 5.74 times, data available on the exchanges showed.
Angel Broking, one of the largest retail broking houses in India, proposed to utilise the net proceeds to meet working capital requirements and general corporate purposes. The brokerage houses like Angel given its leading position in retail broking, robust technology platform, and innovative offerings. Considering the sharp rise in retail participation and ongoing industry challenges, top players are likely to gain market share. Meanwhile, revenue concentration, client concentration, highly competitive industry, and legal/other proceedings against promoters remain key risks for the company, Motilal Oswal Securities said in its IPO note.
Antique Stock Broking said that Angel Broking, recently transformed from full service retail broker to discount broker, presents a unique dilemma - on the one hand, India's financialization story has never been stronger and more durable, while on the other hand, the IPO pricing demands peak valuations at the time of whole new retail investors wave in the equity markets. This forces us to focus more on the risks rather than opportunities and more on the valuation rather than its ability to capture customers at a rapid pace. "Hence, despite being very constructive on India's financialisation theme, we believe that investors should wait for better price points," the brokerage said.
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