Angel One shares in focus as QIP kicks off; floor price at Rs 2,555 apiece, 6% discount

Shares of Angel One Ltd will be in focus on Wednesday morning after the broking firm launched its qualified institutional placement (QIP). The floor price for the QIP issue is set at Rs 2,555.01 apiece, which was at 6.32 per cent discount to Tuesday's closing price of Rs 2,727.60 on BSE. Angel One said a meeting of its securities issuance committee is scheduled to be held Tuesday, April 2, to consider and approve the issue price for shares to be allotted to qualified institutional buyers, pursuant to the issue.

The issue price would be determined by the broking firm in consultation with the Book Running Lead Managers.appointed in relation to the issue.

Last month, Angel One announced raising of up to Rs 2,000 crore to augment margin monies with the stock exchanges and enable increased level of operations by its growing client base. It also cited need for funding of the growing client funding book and tapping into various emerging opportunities across the inorganic universe within the fintech space.

"The growing client base, heightened activity across multiple derivative & cash products along-with consistently increasing quantum of orders executed on the company’s platform, have entailed a sustained requirement of enhanced working capital, to diligently manage such growth in volumes. Some of the regulatory updates in the recent past have also contributed to the enhancement in working capital requirements, for all industry participants," Angel One said last month.

"We wish to inform you that pursuant to the approval accorded by the board of directors of the company, at its meeting held on February 22, 2024, and the shareholders’ resolution passed at the extraordinary general meeting held on March 15, 2024, the Securities Issuance Committee has, at its meeting held today i.e. March 26,2024 inter alia, considered and approved authorising the opening of the Issue today, i.e. March 26, 2024," Angel One said.

Its board approved and adopted the preliminary placement document dated March 26, 2024, together with the application form in connection with the issue and suggested a floor price of Rs 2,555.01 per share, based on the pricing formula as prescribed under the SEBI ICDR Regulations.