Angel Broking down 9%, but trades above listing price of Rs 275

NEW DELHI: After listing at 10 per cent discount to its issue price in the morning, shares of Angel Broking were trading 9 per cent lower at Rs 278 on BSE. The debutant had listed at Rs 275 on BSE and NSE earlier today.

The scrip has hit a high of Rs 296.45 and low of Rs 256.60 on BSE so far. It is yet to touch its issue price of Rs 306 at which the stock commanded a valuation of 26.84 times FY20 earnings.

The IPO, which was sold from September 22 to 24, was quoting at a 6-7 per cent discount in the grey market earlier.

The brokerage manages nearly 21.5 lakh operational broking accounts and Rs 13,254 crore in client assets. Angel

Broking’s brokerage revenues accounted for 69.54 per cent of the total revenues in FY20. Revenue from lending activities, income from depository operations, portfolio management services, income from distribution, and other activities formed 30.46 per cent of the total revenue in FY 2020.

The poor listing for the stock was in line with a recent trend where another debutant Chemcon Speciality Chemicals froze at a 20 per cent lower circuit limit on Thursday following a 115 per cent listing pop. CAMS, which also got listed on Thursday, closed at 13.95 per cent premium over its issue price at Rs 1,401.60, after seeing a 23 per cent listing gain.

Analysts say this could be the initial signs of fading of IPO euphoria.

While Chemcon IPO was subscribed 149 times, CAMS was subscribed 46.99 times. In comparison, Angel Broking was subscribed merely 3.94 times.

YES Securities said Angel Broking has significantly outperformed the industry in terms of client additions, with the share in incremental dematerialisation accounts rising to 14.7 per cent in June quarter from 4.2 per cent in FY18. That said, the brokerage believes that high level of competition in the industry can restrict future growth opportunities for Angel Broking.

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