Angel Broking Limited, one of the largest retail broking houses in the country, can apply to the IPO from today. Even before the IPO opens, the company has raised Rs 179.99 crore from 26 anchor investors on Monday.
Anchor investors include Goldman Sachs, IIFL, Bajaj Allianz, Max Life Insurance, and domestic mutual funds such as ICICI Pru, HDFC, Sundaram, Nippon, Invesco, and Birla.
Retail Investors Can Apply Till 24th September
In this IPO, retail investors can bid until the day after 24 September 2020. The price range for the shares to be allotted under this IPO has been fixed at Rs 305-306 per equity share.
26 Anchor Investors Invested
26 anchor investors have invested Rs 179.99 crore in this company on Monday itself. The company allocated 58,82,352 equity shares to these investors at Rs 306 per share. Through this IPO, the promoters of the company Ashok D Thakkar will sell equity shares worth Rs 18.33 crore and Sunita A Magnani Rs 4.5 crore. In addition, investors will sell IFC 120 crore and individual shareholders a stake of 157.16 crore rupees.
At Least 49 Shares To Be Bid
The lot size for this IPO is 49 shares. This means that the retail investor will have to bid for at least 49 shares. If the investor is bidding at Rs 305, then a lot size will be Rs 14,945. If you want to bid for more shares than this, then you can bid in the fold of 49-49 equity shares.
Who Are The Lead Managers
ICICI Securities Limited, Edelweiss Financial Services Limited and SBI Capital Markets Limited have been appointed book running lead managers for this IPO issue.
Investing In An IPO, So Keep These 7 Things In Mind
It is expected that the issues will get a good response due to an increase in liquidity and a huge increase in the number of new investors. This is the reason that more and more companies are bringing their issues.
If you are also thinking about investing in the primary market, then you should do a thorough investigation of the business model and the financial condition of the company before doing so. You will get all the information about the company from the draft red herring prospectus. Although reading these thick documents is very boring work. Therefore, here are 7 tips which will make it easier for you to make a decision.
1. Promoter’s Background And Management Team
The investor should first see who is the agent of the company. Promoters and top management are the company’s largest assets. So it is important to get information about them. You will get to know about the working culture of the company by how much experience the promoters have in the business they do.
2. Company Strength
The investor should also know what is the greatest strength of the company and what is its position in the industry in which it works. The more you read about the company’s position and strategy, the more you will know about its future.
3. Financial Summary And Comparative Valuation
It is very important to look at the financials of the company. Analysts say that the company’s past 3 to 5 years of revenue growth, margins, balance sheet strength, working capital, cash flow, and other financial parameters should be monitored. It should also be seen whether they have gained much momentum during the last few quarters or one year before the IPOs.
4. Purpose Of Issue And Shareholding After IPO
It is necessary to see the shareholding of the promoters before and after the IPO. A promoter’s higher stake in any company is always better for minority shareholders. It is also important to see how much money is coming from the IPO in the business.
5. Check Valuation
Valuation refers to the relative price. That is, what is its historical and current financial position compared to the price at which the IPO has been offered. Sometimes the price offered in an IPO can be more or less. This depends on the parameters and profitability ratio of the industry.
6. Take Support Of Research Notes And Anchor Allocation
If you have not been able to check the points suggested above, then you can see the opinion of various brokerages about the IPO. It is publicly available. If you do not understand the notes of one brokerage firm, then look at the notes of other firms. Many times anchor investors like mutual funds, private equity, banks, and institutions are the first investors in an IPO. They have a better understanding of the company’s business and future.
7. Big Risk Factor
Companies have to disclose in the prospectus all the big risks and negative things related to their business. It is important for the investor to read it so that he/she can know about the great risk associated with the company. At times, liability and legal issues are entangled with the company, which may affect the company’s prospects in the future.