Angel Broking files offer document with Sebi for IPO to raise Rs 600 crore

As of end-June, the company managed Rs 113 billion in client assets and operates around 1.1 million active broking accounts.

IPO News: Angel Broking filed its offer document with markets regulator Securities and Exchange Board of India (Sebi) on Wednesday. The company is looking at an initial public offering (IPO) of equity to raise Rs 6 billion, half of which would be new funds.

Sources say the offer will value Angel Broking around Rs 25 billion.

Through the IPO, promoter Ashok Thakkar and World Bank arm International Finance Corporation (IFC) will divest part of their holding. The new capital will be used for working capital requirements. ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are managing the IPO.

Earlier this year, ICICI Securities, also a broking and investment banking entity, came out with an IPO which wasn’t received well by investors. Key listed brokers Motilal Oswal, IIFL and Edelweiss are not purely broking entities.

Angel Broking is an independent full-service retail broking house. The company offers services such as broking, advisory, margin funding and loan against shares. It offers broking services through digital platforms and 11,000-odd sub-brokers.

A CLSA report ranked Angel Broking seventh in terms of number of active clients as of March, with a four per cent market share. The top three on this measure were ICICI Securities, HDFC Securities and Zerodha. The top five in the4 segment have three bank-backed ones and one discount brokerage.

Full News Updates → Angel Broking IPO

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News Source: BS

Smart Spending: You can rent a yacht and live a day like a billionaire

Boats are a billionaire pursuit, but rigs can also be leased for parties, the weekend or quick jaunts.

Finance News : Any mention of yachts evokes images of the luxury boats owned by the wealthiest men in the world – the size of their ships directly proportional to the amount of money that’s spent on them. In that world, bigger is better; and around the globe, yachts have been a billionaire pursuit – from Aristotle Onassis’s 99-metre superyacht ‘Christina O’ to absconding billionaire Vijay Mallya’s 95-metre ‘Indian Empress’.

But what most may not know is that it’s possible to sail like a billionaire even if for a day or two because most owners lease their boats out when they aren’t using them. Case in point – can you rent ‘Ashena’ – a 45-metre superyacht with five cabins owned by Raymond’s boss Gautam Singhania? It’s possible if you cough up Rs 800,000 a day, and if that’s too steep for the wallet, there are other options that cater to every budget.

In the island metropolis of Mumbai, the business of boats is a less flashy affair with most owners being avid sailors as opposed to grandstanding tycoons who throw champagne parties for hundreds of people after an F1 race when docked in Monte Carlo or Barcelona. Which also means that ‘Ashena’ is an exception, and most of the boats range between 10 metres and 20 metres. A 20-metre boat can host a party for two dozen people with ease.

Also Read : To earn higher interest income, you have to take some measured risks

These boats can be leased for an evening or a weekend from any one of the couple dozen companies such as Gateway Charters, Sailing Stuff and Yacht Charters India in Mumbai. The upside: it’s cheaper than shelling out a few lakhs for a ballroom at a five-star hotel in the city.

Aashim Mongia, managing director of West Coast Marine Yacht Services in Mumbai says that there are at least fifty professionals who own boats and many do lease them out. The average cost of renting a yacht hinges on size and ranges from between Rs 20,000 for a few hours to a million rupees, depending primarily on size and amenities. He points to two broad sets of clients – those who throw corporate events such as TCS or Axis Bank, or then as a celebration for their clients or themselves.

“We’ve had finance companies bring 25 top-end clients, and they use the boat and for around Rs 300,000 for 25 people in an ambience that is far more unique than anything on land. The only catch is that the gateway of India shuts at 11 pm, so you have to return by then,” Mongia says.

Read More About → Smart Spending

To earn higher interest income, you have to take some measured risks

For fixed-income investors, this is undoubtedly good news, as interest rates will go up. Banks like State Bank of India, ICICI Bank, HDFC Bank and others are slowing raising deposit rates.

Finance News : Interest rates in India are on the upswing. The benchmark 10-year G-Sec bond yield is up around 81 basis points over the past year. Currently, it stands at 7.77 per cent. And, there are expectations that yields would harden further in the second half of the year because the central government’s borrowing programme has been pushed back.

As a result, borrowing will be higher in the second half of the year. State governments, too, are also likely to borrow heavily. Given that 2019 general elections are fast approaching, there could also be some surprise expenses from the government.

For fixed-income investors, this is undoubtedly good news, as interest rates in India will go up. In fact, they already are. Banks like State Bank of India, ICICI Bank, HDFC Bank and others are slowing raising deposit rates. But, instead of just looking at fixed deposits from banks or non-banking financial companies, investors could earn higher interest income from other instruments, such as non-convertible debentures, fixed maturity plans and such.

Also Read : Smart spending: You can rent a yacht and live a day like a billionaire

For starters, if you want to wait and lock yourself into higher rates in the future, the strategy should be to be in shorter-term deposits or funds. Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors, says: “If you decide to invest in fixed deposits, go for a tenure of six to nine months. This will allow you to move to deposits offering higher interest rates if rates continue to rise in the near future.”

Deepesh Raghaw, founder, PersonalFinancePlan.in, adds: “At this point in time, however, investors should stick largely to shorter-duration debt funds that are not subject to duration risk.”

However, if you want to invest now, there are some options:

• Non-convertible debentures
• Accrual funds
• Opt for FMPs to circumvent interest-rate volatility
• Keep an eye on your hybrid funds

Bandhan Bank’s Rs 44-bn IPO opens: Expert views on why you should subscribe

The private sector lender is expected to raise Rs 44.13 billion at the lower and Rs 44.73 billion at the upper end of the price band.

IPO News : The Bandhan Bank initial public offering (IPO) opened for subscription on Thursday, at a price band of Rs 370-375 a share. The issue will close on March 19.

The private sector lender is expected to raise Rs 44.13 billion at the lower and Rs 44.73 billion at the upper end of the price band. The bank has put on offer up to 119,280,494 equity shares, including a fresh issue of up to 97,663,910 equity shares.

The IPO also consists of an offer for sale of up to 14,050,780 equity shares by IFC and up to 7,565,804 equity shares by IFC FIG. Bids can be made for a minimum lot of 40 shares and in multiples of 40 shares thereafter.

Kotak Mahindra Capital Company, Axis Capital, Goldman Sachs (India) Securities, JM Financial and JP Morgan India are book running lead managers to the issue. Karvy Computershare is the registrar to the issue.

Should you subscribe to the Bandhan Bank IPO? Here’s what some brokerages recommend:

IIFL – Bandhan Bank was able to ride the recent MFI crisis smoothly unlike NBFC-MFIs. So in the current form, it is a robust and resilient micro loan financier with great growth prospects. The bank would likely be able to sustain RoA and RoE near the 4% and 25% mark respectively. We believe long term investors would find post-money valuation at 4.8x P/BV reasonably attractive. A comparable benchmark for valuation would be the recent IndusInd Bank-Bharat Fin transaction wherein the former valued the latter at ~5.2x FY18 P/BV.

Centrum Broking  – The bank will be able to attract adequate investor interest. Further, the bank is expected to benefit largely from financialisation of household investments especially in the rural & underbanked areas, vast branch network and presence in high growth segments of micro lending, retail and SME banking. Given the high valuations, investors can subscribe to the issue from a long term perspective. It must be noted that since the issue is being offered at expensive valuation, listing gains may be capped.

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Bandhan Bank IPO kicks off; Here’s All You Need To Know

At IPO price, the microfinance-focused bank is valued at nearly Rs 450 billion.

IPO News : Bandhan Bank is set to become the latest listed lender in India as it looks to raise Rs 4,473 crore via an initial public offering that opens on Thursday.

In the three-day offer, the company will issue up to 11.93 crore equity shares at a price band of Rs 370-375 apiece. At the upper end, it will command a valuation of Rs 44,730 crore, according to BloombergQuint’s calculations.

That makes it larger than not only non-banking finance company-turned banking entities such as AU Small Finance Bank, Ujjuvan Financial and Equitas Holdings, but also private banks such as RBL Bank, Federal Bank and IDFC Bank in terms of market capitalisation.

The IPO is a combination of fresh issue worth Rs 3,662 crore and an offer for sale of Rs 811 crore by existing investors – World Bank arms International Finance Corp (IFC) and IFC FIG Investment Company. Post the offer, the promoter holding in Bandhan Bank will come down to 82.3 percent from the current 89.6 percent.

An erstwhile microfinance company, Bandhan Financial Services Ltd., the country largest at the time, Bandhan Bank commenced banking operations in August 2015 after receiving a universal banking licence from the Reserve Bank of India.

Investment bankers are, however, confident that the issue will garner good response.

“Markets will always show some volatility. The bank’s fundamentals are very strong. It has a differentiated business model. Despite the market corrections, the issue will do well,” said Vishal Kampani, MD, JM Financial Group.

Bandhan Bank and IDFC Bank are among the latest entities to be awarded bank licenses by the RBI. The two received the central bank’s “in-principle” in April 2014 and a final nod a year later.

→ Bandhan Bank IPO ←

Bharat 22 ETF opens today, aims to raise Rs 8,000 crore

Bharat 22 ETF aims to bring broad-based ownership pattern to public sector enterprises: Department of Investment and Public Asset Management

 

The Bharat 22 Exchange Traded Fund (ETF) announced earlier this year as part of the government's disinvestment programme will open for investors on Tuesday and end on November 17.

With the initial issue size of Rs 8,000 crore, the ETF will open for anchor investors on Tuesday, for non-anchor investors on November 15, and close on November 17, Department of Investment and Public Asset Management (DIPAM) Joint Secretary Anuradha Thakur told reporters here.

"Bharat 22 ETF aims to bring broad-based ownership pattern to public sector enterprises. The disinvestment programme now forms the core of the government's investment strategy," she said.
"While the initial issue size for the ETF is Rs 8,000 crore, we can also consider going beyond looking at the response," she added.

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Business News : All you need to know about Bharat 22 ETF

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A discount of 3 per cent has been offered to all categories of investors.

The Bharat 22 ETF comprises 22 companies, or investments, from among central public sector enterprises (CPSEs) and public sector banks (PSBs).

"The ETF is well diversified with investments across six core sectors, including industrials, finance, utilities, energy, FMCG (fast moving consumer goods) and basic materials, and offers good investment opportunity and expect an overwhelming response to this new fund offer," Thakur said.
No sector crosses the 20 per cent sectoral capping and there is a stock capping of 15 per cent.

An ETF is a traded security that tracks an underlying asset like a group of companies or commodity. The government had earlier approved the alternative mechanism through the ETF route to divest its stake in CPSEs.