Angel One to raise ₹2000 crore through QIP to strengthen financial flexibility

According to the company’s BSE filing on Thursday, Angel One intends to raise up to ₹2000 crore through qualified institutions placement (QIP), future public offering, preferential issuance, and other methods.

The Board of Directors meeting earlier in the day approved the strategy to raise funds through various means.

The company plans to use the money it has raised to increase and strengthen its financial flexibility and to make sure the growth of its broking business goes more smoothly. In the fintech industry, the suggested amount will also allow the organization to take advantage of new opportunities that arise throughout the inorganic universe.

The company stated, “to consider, inter alia, proposal for raising of funds in one or more tranches by way of issuance of such number of equity shares having face value ₹10 each of the Company (“Equity Shares”) or any other eligible securities or any combination thereof (hereinafter referred to as “Securities”), for an aggregate amount not exceeding Rs. 2000 Crore (Rupees Two Thousand Crore only) by way of a preferential issue, further public offer or qualified institutions placement (“QIP”) or other permissible mode or through a combination thereof, in one or more tranches.”

The trading business announced in January that its net profit for the three months ending December 2023 increased by 14% annually to ₹260.3 crore. A year prior, Angel One reported a net profit of ₹228 crore.

In the third quarter that concluded on December 31, 2023, the company’s revenue from operations increased by 41.5% to ₹1,059 crore from ₹748.6 crore the previous year.