Angel One announced on Thursday its intention to raise up to Rs 2,000 crore through preferential issue, QIP, or other means.
The brokerage, in a filing with the stock exchange, stated that the purpose of this fundraising is to bolster financial flexibility, facilitating business growth, and capitalizing on emerging opportunities within both the existing and expanding broking business, as well as across the broader fintech landscape.
On Thursday, Angel One’s stock on the BSE concluded trading 0.5% lower at Rs 3,072.35.
The company highlighted a significant increase in its average daily orders, rising from 0.5 million in FY20, when it transitioned to digital, to 1.4 million in FY21, 2.8 million in FY22, 3.7 million in FY23, and further to 5.4 million in the first ten months of FY24, with January 2024 averaging 7.6 million.
Angel One also outlined plans to diversify beyond equity and mutual funds, intending to provide distribution services for credit and fixed-income products to its clientele. The proposed equity fundraising of up to Rs 2,000 crore is expected to enhance the company’s capacity to invest beyond current resources, while also maintaining financial prudence on its path to establishing Angel One as a leading fintech platform, as per the brokerage.
