IFC-backed Angel Broking files for India IPO

The offer will include a fresh issue of shares valued at up to INR3 billion, with the rest consisting of shares from existing investors, according to a prospectus. IFC plans to sell INR1.2 billion worth of stock in the offering; as pricing for the shares has not been announced it is not clear how much of its holding it will exit. IFC invested in Angel Broking in 2007 and currently owns 12.9 million shares, for an 18% stake.

Founded in 1996, Angel Broking provides broking and advisory services, margin funding, loans against shares, and financial products to its clients in India, through its network of more than 11,000 sub-brokers and its digital platforms. The company is one of India’s largest independent full-service retail broking houses in terms of active clients on the National Stock Exchange. It managed over INR113 billion in client assets across 1.1 million active broking accounts as of June 2018.

For the year ended March 2018, Angel Broking reported INR7.8 billion in revenue, up from INR5.5 billion the year before. Over the same period, net profit grew from INR310 million to INR1.1 billion. Proceeds from the IPO will be used to enhance the company’s working capital, which it is not permitted to raise through further issuance of debt, according to regulations.

Angel Broking expects demand for financial services in India to show strong growth in the coming years, particularly in rural areas, thanks to growing financial literacy and government initiatives to integrate more people into the formal banking system. The company sees its long financial markets experience and early adoption of internet banking as key advantages in reaching these customers, who want access to quality services without having to travel long distances to reach providers in major cities.

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• Topics
• South Asia
• Financials
• Technology
• IPO
• India
• IFC
• Exit