Angel One: Metamorphosis into a Fintech? (Previously Angel Broking)


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Hi Guys, Board approves proposals to raise up to Rs. 2000 crore via preferential issue/QIP/other modes. What do you think ?

In bear market dilution is considered negatively. In bull market the qip offer price and interest from qib will define the trajectory. It is good to raise money if you have a paln to use it for m&a other than that it does not make sense to dilute in a asset light model.

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Possibly for ipl sponsorship. Angel One secured ipl sponosorship and surpassed Groww with a bid of ₹410 crore in online stock trading category. My11Circle, RuPay, Angel One, and CEAT secure sponsorship deals worth ₹1,485 crore for IPL - MediaBrief. Looks like Angel wants to be aggressive.

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Thanks guys, Even I hope the same, I wish they utilize this money to accelerate the business in multiple verticals and surpass the other brokers.

Selection As Associate Partner For The Indian Premier League (‘IPL’) By Board Of Control For Cricket In India

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The amount to be considered is upto 2000 cr .Their cash flow can easily support 410 cr . Its for something else …hope they do not end up making a dilutive acquisition .

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working capital requirements for broking companies are increasing, MTF as an additional growth opportunity (equity based regulatory requirements) etc

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Angel One joins hands with Seasoned team of Wealth Managers to lead its Tech-Led Omnichannel Wealth Management Business.



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AngelOne QIP - List of Allottees

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IMO … One can think of options trading on Angel One as betting on IPL via Dream 11

It can’t be profit making for the cohort involved in betting. But Dream 11, Zerodha, Angel One are likely to keep making a lot of money ( Unless there is some unforeseen regulatory action by SEBI or some disruption from the likes of Jio Finance )

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Same as every gambling business (Casino,Sports betting) where the participants involved make way less or loose most of the times while the broker or the institution make loads of money

Frankly speaking its good for angel one and other broking houses those who have large options trading volumes so i dont think they will bring this narrative any how in public

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What is the total amout to be paid for IPL sponsorship?
22.7 Cr has been done. How much is left to be done?

In there investor presentation, they say that they stand 2nd Rank In Incremental NSE Active Clients.

Do we know who is the first? Also are there any public and listed digital brokerage firms like Angel?

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The top one in terms of incremental clients could be Groww. Among listed digital brokerage is 5paisa. Clearly all the listed brokerage firms such as Nuvama, IIFL Securities, SMC Global, Anand Rathi etc are displaying excellent growth and profitability

Angel One -

Q4 concall and results highlights -

Company raised 1500 cr via QIP in Q4. The issue was oversubscribed by 5 times ( by marquee investors ). The proceeds to be used to primarily fund the Margin Trading Facilities

Avg daily orders @ 77 lakh vs 42 lakh in Q4 FY 23, up 83 pc YoY. Avg daily orders in Q4 FY 22 were around 32 lakh

Q4 Financial outcomes -

Revenues - 1357 vs 826 cr, up 63 pc
EBITDA - 480 vs 386 cr, up 28 pc
PAT - 340 vs 267 cr, up 27 pc

Mkt share in India’s demat accounts @ 14.7 pc. This was 10.1 pc in Mar 22 and 13.1 pc in Mar 23
Mkt share in Incremental demat accts @ 23.1 pc
Share in retail equity + F&O turnover @ 18.1 pc

Unique SIPs registered with Angel One @ 13.93 lakh / month in Q4 vs 1.08 lakh SIPs in Q4 FY 23 - witnessing exponential growth !!!

Have tied up with leading Banks and NBFC’s to provide a variety of fixed income products

Breakup of revenues -

Broking revenues - 924 vs 581 cr ( 85 pc of broking revenues derived from F&O segment )
Interest income - 247 vs 137 cr
Others - 186 vs 112 cr

Client funding book @ 1777 vs 1153 cr. Adequately covered by Client’s demat holdings with negligible NPAs

Segment wise Mkt share -

F&O Mkt share @ 19.8 pc
Cash Mkt share @ 15.4 pc
Commodity Mkt share @ 59.5 pc

Have hired a team for launch of AMC business. Waiting for regulator’s nod for a swift launch

Segment wise Mkt share -

F&O Mkt share @ 19.8 pc
Cash Mkt share @ 15.4 pc
Commodity Mkt share @ 59.5 pc

Have hired a team for launch of AMC business. Waiting for regulator’s nod for a swift launch

Angel One became a co-sponsor of IPL which started recently. This is a brand building exercise specially towards tier - 3,4 cities

Onboarded more than 20 lakh clients in Q4 taking their total client base to over 2.2 cr

Have decided to forego dividend payments for next few Qtrs in order to conserve funds for greater working capital requirements to fund growth

Have won the IPL co-sponsorship rights for an annual amount of Rs 82 cr. Out of this Rs 23 cr were booked in Q4. Rest will be booked in Q1. Company is going to pay Rs 82 cr / yr for a period of 5 yrs. In addition, company will spend around 120 cr towards digital and media spends in Q1

EBITDA margin guidance for FY 25 @ 45 pc ( +/- 2 pc ) despite higher costs wrt new hirings, spends related to AMC business, general advertisements, ESOPs, IPL spends etc

Company could not grow its MTF book in Q4 due shortage of funds. Post QIP, this limitation should be behind

Aim to tie-up with multiple banks/NBFCs to ramp up lending business

Disc : hold a small position, biased, not SEBI registered, keenly looking out for Jio’s entry into broking business

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