Tag: angel broking

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Wipro Reports 36% YoY Rise in Net Profit in Q1 – Top Indian Market News

Wipro Q1 Results: Net profit rises 36% YoY to Rs 3,243 crore

Wipro Limited reported a 36.65% year-on-year (YoY) increase in consolidated net profit to Rs 3,242.6 crore for the quarter ended June (Q1 FY22). Net profit has increased by 9.09% when compared to the previous quarter. The IT company’s revenue from operations rose 22.4% YoY (or 12.4% QoQ) to Rs 18,252 crore during the same period. Wipro secured eight large deals worth $715 million (~Rs 5,330 crore) in Q1. However, the attrition rate jumped from 12.1% in Q4 FY21 to 15.5% in Q1 FY22.

Read more here.

Reliance in advanced talks to acquire Justdial: Report

According to a report from ET Now, Reliance Industries Ltd (RIL) is in advanced talks to acquire local search engine Justdial from its promoters in a deal worth Rs 5,920 crore-6,660 crore. The report further states that this acquisition will allow Reliance Retail to leverage the merchant database of the 25-year-old local discovery platform and its network across India. Justdial will evaluate fundraising proposals at its scheduled board meeting tomorrow (July 16).

Read more here.

RBL Bank partners with Visa after RBI bans Mastercard

RBL Bank has entered into a partnership with Visa Worldwide to start the issuance of credit cards on the Visa platform. The lender will be able to issue new cards after technology integration with Visa, which is expected to take 8-10 weeks. The move comes after the Reserve Bank of India (RBI) indefinitely barred US-based Mastercard from issuing new credit, debit, and prepaid cards for its failure to comply with data storage norms. The ban takes effect on July 22.

Read more here.

Zomato IPO subscribed 4.8 times on second day of bidding

The Rs 9,375 crore initial public offering (IPO) of Zomato Limited was subscribed 4.8 times on the second day of bidding. The IPO has received bids for 344.76 crore equity shares against the issue size of 71.92 crore shares. Retail investors have subscribed 4.73 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 45% and 7.07 times, respectively, against their reserved portions. 

To learn more about the IPO, click here.

Kolte-Patil Developers partners with Planet Smart City to develop 15,000 housing units

Kolte-Patil Developers Ltd has created a residential development platform with Planet Smart City to develop 15,000 housing units. The joint entity will primarily focus on developing aspirational housing projects in Pune, Mumbai, and Bengaluru. The platform will enable Kolte-Patil Developers to capture structured outright land purchase transactions while maintaining a sound balance sheet.

Read more here.

Angel Broking Q1 Results: Net profit jumps 156% YoY to Rs 121.36 crore

Angel Broking Ltd reported a 156% YoY jump in consolidated net profit to Rs 121.36 crore for the quarter ended June (Q1 FY22). Net profit has increased by 19.09% when compared to the previous quarter. Its total income rose 92.42% YoY (or 13.28% QoQ) to Rs 474.48 crore during the same period. The company’s board has declared an interim dividend of Rs 5.15 per share. Angel Broking crossed the 5 million client milestone in June 2021. Its board has also approved a proposal to change the company name to ‘Angel One’ or ‘Angel One Fintech’.

USFDA issues import alert on Jubilant Pharmova’s Roorkee plant

The US Food & Drug Administration (USFDA) has placed an import alert on Jubilant Pharmova’s manufacturing plant in Roorkee (Uttarakhand). USFDA had conducted an inspection of the formulations plant in March 2021. Earlier, the Roorkee facility had received an Official Action Indicated (OAI) from the agency in December 2018, followed by a warning letter in March 2019. Jubilant Pharmova said it will engage with USFDA to resolve the import alert at the earliest and ensure Current Good Manufacturing Practice (cGMP) compliance. 

Read more here.

LTI Q1 Results: Net profit rises 19.13% YoY to Rs 496 crore

Larsen & Toubro Infotech (LTI) Ltd reported a 19.13% YoY increase in net profit to Rs 496.3 crore for the quarter ended June (Q1 FY22). Net profit has declined by 8.97% when compared to the previous quarter. Its total income rose 18.88% YoY (or 6.28% QoQ) to Rs 3,584 crore during the same period. LTI is a global information technology (IT) solutions and services company based in Mumbai.

BLS International ties up with Flipkart for last-mile delivery services

BLS International Services Ltd has announced a partnership with Flipkart to provide last-mile delivery services across India. The company works with over 46 client governments, including Diplomatic Missions, Embassies & Consulates, and leverages technology and processes that ensure data security. BLS has more than 12,000 centres globally, with 15,000+ employees and associates that provide consular, biometrics, and citizen services. 

Read more here.

Tata Elxsi Q1 Results: Net profit rises 64% YoY to Rs 113.37 crore

Tata Elxsi Limited reported a 64.61% YoY increase in net profit to Rs 113.37 crore for the quarter ended June (Q1 FY22). Net profit has declined by 1.55% when compared to the previous quarter. Its total income rose 39.11% YoY (or 9.63% QoQ) to Rs 575.81 crore during the same period. Tata Elxsi is a leading design and technology services provider based in Bengaluru.  

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Market News Top 10 News

Govt Sets New Rules for Social Media, OTT Platforms – Top Indian Market News

Govt sets new rules for social media, OTT platforms

The Central government, on Thursday, released guidelines for regulating social media and over-the-top (OTT) platforms to curb misuse of content. Some of the new changes include a strict oversight mechanism involving several ministries. In a press conference, Union IT minister Ravi Shankar Prasad said that the guidelines will keep an eye on the web/OTT content and empower social media users. Digital platforms can set up a self-regulatory body to review their age-based content. The new guidelines will be implemented within 3 months. 

Read more here.

Heranba Industries IPO subscribed 83 times on final day of bidding

The Rs 625-crore initial public offering (IPO) of Heranba Industries was subscribed 83.29 times on the final day of bidding. The issue received bids for 58.15 crore equity shares against an offer size of 69.81 lakh shares. The portion reserved for retail investors was subscribed 11.84 times. The portion set aside for non-institutional investors (NIIs) witnessed a subscription of 271.15 times, while that of qualified institutional buyers (QIBs) 67.45 times.

UK Court orders extradition of Nirav Modi to India

A UK Magistrates’ Court on Thursday ruled that fugitive diamond dealer Nirav Modi can be extradited to India to face charges of fraud and money laundering in the estimated $2 billion (~Rs 14,528 crore) Punjab National Bank (PNB) scam case. Nirav Modi is the subject of two sets of criminal proceedings. The first is the CBI case relating to a large-scale fraud upon PNB through the fraudulent obtaining of Letters of Undertaking (LoUs) or loan agreements. The second is the Enforcement Directorate (ED) case relating to the laundering of the proceeds of the PNB fraud.

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Ashok Leyland to acquire Nissan’s 38% stake in Hinduja Tech for Rs 70.20 crore

Ashok Leyland has entered into a share purchase agreement (SPA) with Nissan International Holding BV to acquire 38% stake in Hinduja Tech Limited (HTL) for Rs 70.20 crore. After the acquisition, Hinduja Tech will become a wholly-owned subsidiary of Ashok Leyland. In November 2014, Ashok Leyland had sold 38% stake in HTL to Nissan International Holdings BV, the investment arm of Nissan Group, for an undisclosed sum.

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Bharti Airtel raises $1.25 billion through debt instruments

Bharti Airtel Limited said it has raised $1.25 billion (~Rs 9,064 crore) through the issue of debt instruments. The debt raising of the telecom company comes just before the start of the spectrum auction valued at Rs 3.92 lakh crore. Airtel said this is the first-ever dual-tranche US dollar bond issued by the company spread across senior and perpetual issuance. [Senior bond is a debt instrument that has higher priority compared to others in the event of liquidation. Perpetual bonds are those which do not have a maturity date and are riskier]

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Coal India to invest in 26 projects in new business areas: Report

As per a report from CNBC TV-18, Coal India Limited plans to invest Rs 1.43 lakh crore in 26 projects in new business areas. The new business areas will include solar wafer manufacturing, a greenfield aluminium project (along with brownfield aluminium projects in a joint venture with NALCO), solar generation projects, and thermal power plants. The company also plans to invest Rs 38,000 crore in clean coal technologies.

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Airbus selects L&T Technology Services for Skywise Partner Programme

L&T Technology Services (LTTS) has been selected by aerospace company Airbus SE to become part of its ‘Skywise Partner Programme’. LTTS will provide technology and digital engineering solutions for Airbus’ Skywise platform. The company will support Airbus in the development of complex workflows, creation of new interfaces, and assist in their digital transformation with Skywise. 

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M&M sells Mahindra First Choice Services for Rs 21.5 crore to TVS

Mahindra Holdings Ltd, a wholly-owned subsidiary of Mahindra and Mahindra (M&M), has concluded the sale of its 100% stake in Mahindra First Choice Services (MFCS) to TVS Automobile Solutions. The services arm of the used car business was sold for a consideration of Rs 21.5 crore. Mahindra Holdings has also sold its 100% optionally convertible redeemable preference shares in Auto Digitech to TVS for Rs 13.5 crore.

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South Indian Bank to raise Rs 239 crore via preferential allotment of shares

The Board of Directors of South Indian Bank Ltd has approved the issuance of up to 28.30 crore equity shares (of the face value of Re 1 each) to HDFC Life Insurance Company Ltd, Kotak Mahindra Life Insurance Company Ltd, SBI Life Insurance Company Ltd, and ICICI Lombard General Insurance Company Ltd at Rs 8.48 per share. The total issue size is Rs 239 crore. The fundraising is subject to the approval of shareholders.

Angel Broking partners with Vested Finance to allow Indian investors to invest in US-based stocks

Angel Broking has partnered with Vested Finance to enable domestic investors to easily invest in US-based stocks and ETFs. Users will be able to invest in fractional shares, with no minimum balance requirement, anytime withdrawal, and a quick and easy sign-up process. Vested Finance is a California-based firm that provides an online investment platform to invest in the US stock market.

Read more here.

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PM Modi Reveals Plans to Boost India’s Renewable Energy Sector – Top Indian Market News

PM Modi reveals plans to boost India’s renewable energy sector

During his speech at RE-Invest 2020, Prime Minister Narendra Modi stated that India has huge renewable energy deployment plans for the next decade. These plans will likely generate business opportunities worth $20 billion (~Rs 1.47 lakh crore) per year. He further said that India’s renewable energy capacity is currently the 4th largest in the world. PM Modi has also invited investors and developers to join India’s renewable energy journey.

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India restricts international flights till December 31

The Government of India has extended the ban on scheduled international flights till December 31, amidst the ongoing Covid-19 pandemic. The Directorate General of Civil Aviation (DGCA) has stated that only selected flights will be allowed on a case-to-case basis. The restriction will not apply to international cargo flights. Special international flights under the Vande Bharat Mission will be allowed to operate under ‘air bubble’ agreements with selected countries.

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Bombay High Court refuses to stay merger of Lakshmi Vilas Bank and DBS

A group of promoters of Lakshmi Vilas Bank (LVB) had filed a petition in the Bombay High Court, challenging the merger of LVB with DBS Bank India Ltd. The promoters have initiated legal action against the RBI, the Indian Government, and DBS Bank. The High Court, on Thursday, refused to provide interim relief sought by the promoters to stay the merger. The merger will be effective from November 27. The petition has been placed for hearing on December 14. 

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TVS Automobile Solutions acquires service business of Mahindra First Choice

TVS Automobile Solutions Pvt Ltd (TVS ASPL) has acquired the service business of Mahindra First Choice Services Ltd (MFCSL). MFCSL is a chain of multi-brand car and two-wheeler service workshops and is owned by the Mahindra Group. As part of the transaction, Mahindra & Mahindra Ltd. will secure a minority stake in TVS ASPL.

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Ajanta Pharma announces details of proposed buyback

Ajanta Pharma Ltd. has announced details of activities regarding its share buyback plan. The company will buyback 7.35 lakh equity shares at Rs 1,850 per share. The date of opening of the buyback offer is on December 3. The buyback offer will be closed on December 16. The last date of settlement of bids on the stock exchange will be December 24. 

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Glenmark Pharma gets listed in Dow Jones Sustainability Index for 3rd straight year

Glenmark Pharmaceuticals Ltd. has been listed in the Dow Jones Sustainability Index (DJSI), under the category of emerging markets, for the third consecutive year in a row. DJSI is one of the world’s most widely accepted sustainability benchmarks. It consists of the top-ranked companies in terms of Corporate Sustainability. Glenmark is ranked 13th among global pharmaceutical companies in the DJSI Emerging Markets 2020.

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Tube Investments to raise Rs 350 crore from Azim Premji Trust, SBI Mutual Fund

The Board of Directors of Tube Investment of India Ltd (TIIL) has approved raising Rs 350 crore from the Azim Premji Trust and SBI Mutual Fund. The company will allot shares to both entities on a preferential allotment or private placement basis. Azim Premji Trust will get 27.33 lakh shares worth Rs 200 crore. SBI Mutual Fund’s two schemes- SBI Focused Equity Fund and SBI Magnum Midcap Fund will get 15.03 lakhs share and 5.46 lakh shares worth Rs 110 crore and Rs 40 crore, respectively.

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Laurus Labs acquires 72.55% stake in Richcore Lifesciences

Laurus Labs Ltd. has acquired a 72.55% stake in biotech company Richcore Lifesciences from Eight Roads Ventures and VenturEast. The cost of the acquisition has been estimated at Rs 246.67 crore. Laurus Labs has stated that Richcore Lifesciences will be renamed Laurus Bio Private Ltd, after the successful closure of the transaction.

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IL&FS receives binding offer for its energy advisory business

IL&FS, on Thursday, said that it has received a binding offer for the acquisition of its energy advisory subsidiary- IL&FS Energy Development Company Ltd (IEDCL). The company currently holds a 95.54% stake in IEDCL. The winning bidder would acquire both the assets and liabilities of IEDCL. The bids are open till December 7.

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Meghmani Organics to set up multipurpose plant in Dahej

Meghmani Organics Ltd. has announced that it is planning to set up a multipurpose plant in Dahej at a cost of Rs 310 crore. The plant is expected to be commissioned by the fourth quarter of the financial year 2021-2022. The company also stated that it has commenced commercial production at two of its plants situated in Bharuch, Gujarat.

Angel Broking enables API integration for algo trading

Angel Broking has announced that it has enabled API integration for algorithmic trading, through the launch of SmartAPI. This feature allows its users to execute real-time trades via Angel Broking, while also empowering algorithmic traders to deploy their programs in 5 programming languages. Algorithmic trading (also called automated trading) uses a computer program that follows a defined set of instructions to place a trade.

Read more here.

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Market News Top 10 News

Hero MotoCorp to Sell Harley-Davidson Motorcycles in India – Top Indian Market News

Hero MotoCorp to sell and service Harley-Davidson motorcycles in India

Hero MotoCorp Ltd. has signed an agreement with Harley-Davidson Inc. to develop and sell premium motorcycles in India, under the Harley brand name. According to the distribution agreement, Hero will also sell the accessories, parts, and merchandise of the US-based motorcycle maker. This would allow Harley Davidson to retain its operations in India.

Read more here.

Tata Motors Q2 Results: Net Loss increases to Rs 307 crore

Tata Motors Ltd. reported a consolidated net loss of Rs 307.3 crore, for the quarter ended September (Q2). The company’s total revenue from operations declined by 18.19% to Rs 53,530 crore, during the same period. The company has now reported a net loss for three quarters in a row. The share price of Tata Motors saw a rise of 2.21%, and closed at Rs 136.65 on the NSE today.

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TCS partners with Equinor for digital transformation

Tata Consultancy Services (TCS) has been selected as a strategic partner by Equinor, a Norway-based global energy company. The partnership will help to accelerate Equinor’s vision of becoming a digital energy company. TCS will use its expertise and technology framework to help Equinor achieve its growth and transformation objectives.

Read more here.

Bharti Airtel reports net loss of Rs 763 crore in Q2

Bharti Airtel Limited has reported a consolidated net loss of Rs 763 crore, for the quarter ended September (Q2). The company’s revenue from operations increased by 22% year-on-year (YoY) to Rs 25,785 crore, during the same period. The share price of Bharti Airtel fell by 0.17%, and closed at Rs 433.30 on the NSE today.

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HCL Tech completes acquisition of Cisco’s SON platform

HCL Technologies Limited has completed the acquisition of Cisco’s Self Optimization Network (SON) technology. The cost of the acquisition has been estimated at $49 million (~Rs 361 crores). The Cisco SON platform will help HCL to meet the needs of its customers in the telecommunications industry.

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Angel Broking reports Profit after Tax at Rs 74.6 crore in Q2

Angel Broking has reported its highest-ever quarterly profit after tax (PAT) at Rs 74.6 crore, for the quarter ended September (Q2). The total income has increased by 29% quarter-on-quarter (QoQ) to Rs 317.9 crore. The Board of Directors of Angel Broking has approved an interim dividend of Rs 4.15 per share.

Read more here.

Tech Mahindra acquires Momenton and Tenzing to boost financial services business

IT major Tech Mahindra, on Tuesday, said it has acquired Australian-based Mementon, a digital enterprise technology firm, for Rs 75 crore. The IT company has also acquired New Zealand-based Tenzing Ltd., which is a technology consulting company, for Rs 217.3 crore. The two companies will help Tech Mahindra to further strengthen its financial services position in the Australia-New Zealand (ANZ) market.

Read more here.

Amara Raja Batteries Q2 Results: Net Profit falls 8% YoY to Rs 201 crore

Amara Raja Batteries Limited has reported an 8% year-on-year (YoY) decline in net profit to Rs 201 crore, for the quarter ended September (Q2). The company’s revenue from operations increased by 14% to Rs 1,936 crore, during the same period. The share price of Amara Raja Batteries saw a rise of 3.38%, and closed at Rs 786 on the NSE today.

Read more here.

Ceat Limited Q2 Results: Net Profit jumps four-fold to Rs 182 crore

Ceat Limited, on Tuesday, reported a four-fold increase in net profit to Rs 182.18 crore, for the quarter ended September (Q2). The tire manufacturing company’s revenue from operations increased by 16.96% to Rs 1,978.47 crore, during the same period. The share price of Ceat Ltd. saw a rise of 1.19%, and closed at Rs 1,142 on the NSE today.

Read more here.

Patel Engineering gets Rs 1,564 crore order to build hydro project in Arunachal Pradesh

Patel Engineering Limited has received an order worth Rs 1,564.42 crore to build the 2,000 MW (megawatt) Subansiri Lower Hydro Electric Project in Arunachal Pradesh. The company has stated that this would be the largest hydro power generation project in India. The project is located at Kolaptukar village, in Kamle district of Arunachal Pradesh.

Read more here.

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Editorial

Angel Broking IPO: All you need to know

What is an IPO (Initial Public Offering)?

IPO’s are at a boom right now. We covered all the details of CAMS IPO you wanted to know before it was launched a few days back. Today, we are going to talk about the Initial Public Offering (IPO) of Angel Broking.

The Angel Broking public offer is the 8th IPO in 2020, and the 7th after COVID-19 lockdown. SBI Card, Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds, Route Mobile, Chemcon Speciality Chemicals and Computer Age Management Services (CAMS) are the previous seven companies to launch their IPO this year.

About the company

Angel Broking Ltd is one of India’s oldest stockbroking houses. It was incorporated in 1996. It provides broking, margin funding, advisory and financial services. The company also conducts research services and gives out investment advice.

Currently, Angel Broking is the fourth largest broker on NSE (in terms of active clients) with a market share of 6.3% as of June 2020. It has several applications like Angel Broking Mobile, Angel BEE, SpeedPro and NXT. As of June 30, 2020, Angel Broking mobile application had more than 4.3 million downloads. Also, it’s Angel BEE mobile application had nearly 1 million downloads.

The company was forced into adopting discount broking system, after the coming of new age brokers like Zerodha.

IPO Details

Angel Broking plans to raise to Rs 600 crore through the book-building issue. It will be a fresh issue of Rs 300 crore and an offer for sale of Rs 300 crore. Offer for sale means that the current promoters of the company are getting an exit. On Monday, Angel Broking raised nearly Rs 180 crore from more than 20 anchor investors. They have been allotted 58.8 lakh shares for Rs 306 each.

The quota for retail investors is fixed at 35%. QIB and NII quota are fixed at 50% and 15%. The leading book managers for this IPO are ICICI Securities Ltd, Edelweiss Financial Services Ltd and SBI Capital Markets Ltd.

One market lot consists of 49 shares. For retail investors, the minimum lot is 1 and the maximum lot is 13. That means a retail investor has to pay at least Rs 14,945 to bid for the issue. Maximum limit says that a retail investor cannot invest more than Rs 1,94,922 (13 Lots X 49 Shares X Price). The tentative date for IPO’s listing date is 5th October 2020.

IPO DateSep 22, 2020 – Sep 24, 2020
Issue TypeBook Built Issue IPO
Issue SizeUp to Rs 600 crore
Fresh IssueUp to Rs 300 crore
Offer for SaleUp to Rs 300 crore
Face ValueRs 10 per equity share
IPO PriceRs 305 to Rs 306 per equity share
Market Lot49 Shares
Min Order Quantity49 Shares
Listing AtBSE, NSE

Financial Highlights

Angel Broking’s total revenue from operations was Rs 724.62 crore in FY20. Total revenue for the month ending June or Q1FY21 was Rs 238.42 crore. During this period, Angel Broking earned 14.65% of the income from interests and 85.21% from fees and commissions. As of June 30, 2020, they have more than 21.5 lakh operational broking accounts.

Angel Broking’s Revenue and Profit After Tax is growing at a CAGR of 15% and 32% respectively. Their ROE has remained stable at 15.2 from 2019 to 2020, which is nothing extra-ordinary. The broking firm’s client base has increased from 10.6 lakh in FY18 to 21.5 lakh as on June 2020. Thus, at a CAGR of 38.61%, which even though it looks good is not as good as peers. In the first quarter of FY21, they have seen a monthly client addition of 1.15 lakh clients on an average.

2017-182018-192019-20
Revenue738.5737710.5
PAT101.176.786.6
EPS14.0410.6512.03
(Values are in crore rupees)

The Pros

  • Angel Broking is the fourth largest broking house based on active clients after Zerodha, ICICI Securities and RKSV (Upstox).
  • Robust client base through the online and digital platform. They also have a strong sub-broker network.
  • Track record of strong financial performance over the years.
  • Ability to use technology to cut down on costs which gives them a larger net profit margin.
  • Huge untapped brokerage industry. Retail trading has taken a quantum leap. Domestic broking industry’s revenue has increased by 10.5% CAGR between FY15-FY20.
  • Experienced management team leading the business.

The Cons

  • A lot of competition in the market already. Its listed peers are ICICI Securities Ltd., Geojit Financial Services Ltd., IIFL Holdings Ltd., Motilal Oswal Financial Services Ltd. and JM Financial Services Ltd. Its unlisted peers are Zerodha, RKSV Securities and 5Paisa Capital, etc. New age brokers are coming in with newer and faster tech faced products which Angel Broking may find hard to follow.
  • Their valuation is on a bit higher side. Its valuation is 26.84 times FY20 earnings.
  • Emerging low-cost brokers will pile more pressure on the company in the future to retain their clients.

Do make your own studies before investing in any company. To get a complete idea of the company, you can find the red herring prospectus submitted by Angel Broking, here.