InvestorQ : Why did Angel Broking list at a discount to issue price when most of the other IPOs have listed at a premium to the issue price?
swati Bakhda made post

Why did Angel Broking list at a discount to issue price when most of the other IPOs have listed at a premium to the issue price?

Answer
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Sam Eswaran answered.
3 weeks ago


Angel broking listed at a 10% discount to the issue price at Rs.275. During the first hour of trade, it touched a high of Rs.292 and a low of Rs.257. The IPO of Angel Broking had been priced at Rs.306 per share and had been subscribed around 3.8 times.

The listing process was largely in line with analyst expectations citing valuations concerns, stunted revenue growth and limited capacity to withstand completion from the deep discount brokers like Zerodha, 5 Paisa and RKSV in the Indian market.

That is why, despite robust client additions the stock has been hit by rising competition in the broking industry. Revenues of the company have also been trending down. The big challenge for such companies will be profitable growth.