The fundraise aims to augment and build financial flexibility to grow the business and harness various emerging opportunities both within the existing and expanding broking business, and across the inorganic universe within the fintech space.
Shareholders of the company approved the QIP at an extraordinary general meeting earlier this month.
The growing client base, and heightened activity across multiple derivative and cash products along with the consistently increasing quantum of orders executed on the company’s platform, have entailed a sustained requirement of enhanced working capital to manage such growth in volumes, Angel One said.
Some of the regulatory updates in the recent past have also contributed to the enhancement in working capital requirements, for all industry participants, it added.
The sustained activity of Indian retail investors is visible across key metrics such as gross client acquisition, number of orders, revenue uptick and segmental market share.The company’s average daily orders have grown significantly from 0.5 million in FY20 to 1.4 million in FY21, 2.8 million in FY22, 3.7 million in FY23 and further to 5.4 million in the 10 months of FY24.Further, Angel One has launched a mutual fund offering on its SuperApp platform. It has seen good traction and growth amongst its client base, with higher incremental SIPs being registered every quarter since its launch.
Angel One plans to move beyond equity and mutual funds and offer a distribution of credit and fixed-income products to its clients.
“These offerings will further strengthen the engagement of your company’s clients on its SuperApp platform and should help boost growth across its broking and distribution Businesses,” the brokerage firm said.
On Tuesday, Angel One’s shares closed 3.3% higher at Rs 2,750 on the NSE.
