Angel Broking Shares End 10% Lower On Stock Market Debut
The stock started trading at Rs 275 apiece compared to its issue price of Rs 306.
Shares of Angel Broking Ltd. ended 9.9% lower on the first day of trading on the bourses.
Shares debuted at a 10% discount to its issue price, more than a week after the brokerage's initial public offering closed with a muted response.
The stock started trading at Rs 275 apiece compared to its issue price of Rs 306, according to data available on the exchanges. That compares with a 24-115% premium on listing by previous debutantes such as CAMS Ltd., Route Mobile Ltd., Happiest Minds Technologies Ltd. and Chemcon Specialty Chemicals Ltd.
The 600-crore IPO of Angel Broking subscribed nearly 4 times on the final day of bidding. The category reserved for qualified institutional buyers subscribed 5.74 times, while retail individual investors 4.31 times. Non-institutional investors bid for 69% shares on offer.
The offers for CAMS, Route Mobile, Chemcon Specialty and Happiest Minds had subscribed 47-151 times. Another IPO by Mazagon Dock Shipbuilders Ltd. subscribed 158 times on the final day of bidding, but this is yet to be listed.
Angel Broking, in its red herring prospectus, had said the proceeds from the issue will be utilised for meeting working capital requirements and general corporate purposes.
The brokerage, which managed Rs 13,254 crore in client assets and over 21.5 lakh operational broking accounts as on June 30, expects to benefit from growth in smaller cities as stock trading via mobile phones spiked amid increased retail investor participation, and expansion of its digital platform.