Ashika Broking Limited Registrar BRLM Exchanges Face Value IPO Process Issue Size The Offer Bid Lot Price Band Issue Opens Company Name Industry: IPO Note: ➢ ➢ ➢ ➢ Company ➢ ➢ Fresh Magnani 1 The Offer Objects , 200 a Company’s segment and acquired Currently, network funding, It driven entrepreneur already Angel General To Company CAGR is 1008, Raheja 214,Centre, Nariman Point, . meet for Issue 02 a has and Broking Sale million of retail of corporate working . of 96 loans Highlights 12 through the up 37 company Shareholder) 9 Equity Rs Public Link IntimeLink Private Limited SBI Edelweiss NSE & BSE Rs. 10.00 100% Book Building Rs. 600 49 Equity Shares and multiplesin thereof. Rs.to 305 306 Rs. September 22, to 2020 September 24, 2020 Angel BrokingLtd. over % client will , , broking 000 803 broking % . to of by Capital 10 ltd Offer Ltd.Broking Angel against of . 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Thakkar, advisory Sale to to over Total Public RII HNI Anchor Investor QIB Issue Size up Break Issue * Based on Higher * Based Rs. @ Band Higher on Price 306 shareholders) Equity Share Post Issue (Nos. Cr.) OFS Share (Nos. Cr.) Fresh Share (Nos. Cr.) Equity Share Pre Dilution Market Cap (Rs. Cr.) in B the 2 a digitally 2 is terms . 15 by C full 91 largest through OFS Fresh years business up mn the services, % Ashika Research Research Ashika service of to of as Selling - platform active 704 www.ashikagroup.com broking Rs brokerage Mr on online Date: Date: September 22, 2020 - . Issue (Nos. Issue Cr.) . 45 and June research digital Dinesh clients . Shareholder 00 firms digital rest Allocation and 30 million income and , 100% - 2020 of come services, Thakkar, remaining 35% 15% 30% 20% in Equities platforms NSE, technological B by 2 Equity Equity Shares* . . growing B from (up Sunita 19,607,843 covering segment 6,862,745 6,862,745 2,941,176 5,882,353 3,921,569 margin MD to 2,503.0 2,503.0 15 12.0% 12.0% 24.0% B and Rs 2 % at A & 8.2 8.2 1.0 1.0 7.2 B . . 1 Ashika Stock Broking Limited ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ operations, of Angel in firms However, the As is utilize The provide operating full In the adding Company been In and Company share In FY In which and Q brought just broking youth and older Indian attract clients 2015 First Angel 1008, Raheja 214,Centre, Nariman Point, Mumbai 1 valued 18 the retail Q Indian last Indian FY total same back FY 1 Re average now begun issue in . . , 21 FY done in generation During broking industry, broking Angel population 20 has Hyper the 5 market lot 0 clients 2011 in 21 , the cash demat which new quarters the for of revenue we at broking period broking and has there is of now 2018 is fund expenditure company’s through given portfolio P/E lower company pricing equity broking daily , customers broking are comprises revolution market, Q Intelligent done company already is is and is 1 has grown account particularly multiple for has . FY managing and engaged in growing who industry, industry which lower the interest turnover and 21 thus witnessed delivery capital significant digital influx been best which management Angel industry , company a to client achieved fees company like competitive remaining is launched the and is in of is interest 7 of investment in 14 huge in , point and 00 platform smart is going mostly rates, requirement around to Rs and top 23 from has of revenue . the i brought full . acquisition - just 7 , trade 000 invest . in witnessed % Rs 300 1 price youth has 5 competition commission taken industry net x added due service . last phone increasing to the . on rate players 619 mobile clients Rs towards services, 30 share crore drive prime profit which edge the drops and business to zero in engine few 13 who % price billion and 113 lower fixed segment and influx , . broking has 000 - net strong contribute application, of 400 021 in account the over Rs fresh months brokerage of much large plan in join , 000 drops a digitalization literacy income 17 income general in . 20 grown profitability ARQ Rs last crore demand . quarter deposits In interest point its . the 3 the issue 48 per a clients , Ph FY growth cost . mobile business % few peers will in complete in 44 18 of - industry crore which job significantly from 022 order rate stood and firms order corporate % 2016 . by effective , customers quarters followed and for . overall be rate, . vs In – wants market with penetration should lending and 6611 1700, Extn. vs distribution, didn’t retail sustainable . with 14 India, , has and for Rs at to Angel increasing Rs which digital , Rs 000 SEBI’s total acquire 300 intraday, broking increased to in than 87 broking purpose technology by share broking grow witness 203 market assets as order put in activities, BEE crore launch crore clients affects most physical focus platform Ashika Research Research Ashika FY crore like . in the in savings and industry 18 The for education . - to . business FO, and sync 704 www.ashikagroup.com reported is growth terms At from offer . of clients JIO of increase acquisition on the other vs underpenetrated, mutual growth upper cost currencies thus the income client digital with protecting Rs internet in 8 money pricing for of % added from 564 client activities 2019 accounts and and such clients in level price client in sale fund acquisition in its electronics FY FY crore from - stay here that the of in , market of 300 platform growth Equities . 20 & acquisition 18 which and band Company for the over acquisition equity most from . industry . . competitive nearly , onwards The is reported 000 Company’s depository increasing millennial investors in the going share 346 . in used broking 35 current clients KYC equity unlike which retail issue 70 % , 000 will has has on by % to to in in in in . 2 Ashika Stock Broking Limited Market Share ADTO Market Share ADTO Market Share ADTO Overall Equity Market share ADTO Segment Parameters Instant Instant fund payout Zero fund transfer charges Knowledge centre/Education Streak etc.) Paid services (Smallcase/ Sensibull/ Securitiesas collateral Margin trading facility Advisory Complementary Inhouse Research / Zero Account opening fee ICICI ICICI (tieredsecurities plan ICICI (tieredsecurities plan ICICI Securities IIFL Securities Motilal Oswal HDFC Securities Kotak Securities (tieredsecurities Axisplan) SecuritiesAxis 5 Paisa RKSV Securities Angel Broking Total Revenue Net gain on fair value changes Feesand commission income InterestIncome (InRs. Cr) Services Brokerage Average Revenue - – - - F&O F&O Cash Overall 1008, Raheja 214,Centre, Nariman Point, Mumbai offered - - - Daily from Commodity F&O Cash rates Turnover Operations of by various different - - 15055 12310 2) 1) 8.8% 2.9% 8.5% 3.2% 8866 1679 2018 (ADTO) Year Year Ended major 10.0% 10.9% 12407 16809 Revenue 2.7% 3.0% 1938 2138 2019 Broking Broking Angel players ✓ ✓ ✓ ✓ ✓ ✓ ✓ × for brokerages 764.3 526.6 236.9 0.25% 0.25% 0.55% 0.50% 0.50% 0.50% 0.49% 0.25% 0.50% Rs. 20 0 0 0 Delivery 16.9% 13.7% 33973 41324 5.1% 5.4% 0.8 3729 2926 2020 broking FY18 Zerodha Revenue % of ✓ ✓ × × × × × × Q1 Q1 FY20 100.0% 68.9% 31.0% 12.4% 12.7% 19808 25318 0.1% 3.4% 3.7% 2458 2555 - RKSV RKSV services 400 021 across ✓ ✓ ✓ × × × × × Q2 Q2 FY20 Revenue 0.03% 0.03% 0.28% 0.05% 0.05% 0.05% 0.05% 0.03% 0.05% Rs. 20 Rs. 20 Rs. 20 Rs. 20 Intraday 5 Paisa 13.8% 14.5% 35827 29035 4.7% 4.4% 2661 3348 , Ph ✓ ✓ ✓ ✓ ✓ ✓ products × × 758.0 555.6 202.4 and Period Period Ended - 0.1 022 FY19 Q3 Q3 FY20 Securities Securities ICICI the 14.3% 19.1% Revenue % of 45007 36948 – 5.9% 5.6% 3173 4181 ✓ ✓ ✓ ✓ ✓ ✓ × × 6611 1700, Extn. 100.0% market 73.3% 26.7% 0.0% 0.03% 0.03% 0.05% 0.05% 0.05% 0.05% 0.05% 0.03% 0.05% Rs. 20 Rs. 20 Rs. 20 Rs. 20 Futures Q4 Q4 FY20 Securities Securities HDFC 14.0% 20.9% 58202 49247 6.9% 6.7% 3300 4864 Revenue ✓ ✓ ✓ ✓ ✓ ✓ ✓ × share Ashika Research Research Ashika Q1 Q1 FY21 724.6 564.4 157.7 Securities Securities Kotak 17.3% 24.6% 61895 51108 - 2.5 8.2% 7.8% 5781 3775 FY20 704 www.ashikagroup.com (Rs ✓ ✓ ✓ ✓ ✓ ✓ ✓ × Revenue % of + + 5 Rs.per lot Rs. 20 per order Rs. 35 per lot Rs. 95 per lot Rs.per 100 lot Rs. 70 per lot Rs.per 100 lot Rs.per 300 lot Rs. 50 per lot Rs.per 100 lot Rs. 20 Rs. 20 Rs. 20 Rs. 20 Options . Cr Mar’20 100.0% 11.9% 18.0% 42590 34636 77.9% 21.8% 6.4% 6.2% Securities Securities Axis . 3044 3826 0.3% ) ✓ ✓ ✓ ✓ ✓ ✓ ✓ × Apr’20 Revenue 16.1% 20.3% 44446 36527 Month Month Ended - 6.8% 6.3% 4858 2049 Equities 238.4 203.2 + Rs. 5 5 + perRs. lot Rs.per 20 order Rs.per 35 lot Rs.per 95 lot perRs. lot 100 0.05% perRs. lot 100 perRs. lot 300 Rs.per 50 lot perRs. lot 100 Rs. 20 Rs. 20 Rs. 20 Rs. 20 Commodity 34.9 May’20 Q1FY21 0.3 18.4% 25.3% ✓ ✓ ✓ ✓ ✓ 54120 43012 × × × 7.6% 7.0% 5634 4242 Revenue % of 100.0% Jun’20 Oswal Motilal 85.2% 14.7% 17.3% 26.0% 82885 70030 0.1% 9.6% 9.2% 6664 4785 ✓ ✓ ✓ ✓ ✓ × × × 3 Ashika Stock Broking Limited Total JM Financial Aditya Birla Money SecuritiesReliance EdelweissBroking Ltd SBICAP Securities SecuritiesAxisLtd Services Motilal Oswal Financial 5Paisa Capital Ltd Kotak SecuritiesLtd HDFC SecuritiesLtd Angel Broking Ltd Pvt Ltd India RKSV Securities ICICI SecuritiesLtd Zerodha BrokingLtd Total SecuritiesRelianceLimited HDFC SecuritiesLtd. ICICI SecuritiesLimited EdelweissBrokingLimited JM Financial Ltd. Services Aditya Birla Money limited India Infoline Ltd. SBI Cap LimitedSecurities Motilal Oswal Financial Ltd Services SecuritiesAxisLimited Kotak SecuritiesLtd. RKSV SecuritiesIndia Private Limited 5Paisa Capital Limited Angel Broking Limited Zerodha BrokingLimited Brokers Name Active Active 1008, Raheja 214,Centre, Nariman Point, Mumbai client clients acquisition on NSE (‘000) (‘000) FY15 5,092 114 286 114 120 153 268 348 160 595 for 27 43 47 30 0 7 (‘000) (‘000) FY16 Q major 5,170 1 263 126 184 166 247 408 171 560 FY NA 28 39 97 77 11 62 21 (‘000) (‘000) FY17 brokerages 5,951 198 169 259 207 274 483 230 618 166 32 40 83 75 17 4 (‘000) (‘000) FY18 8,290 123 105 225 214 405 308 369 602 364 798 541 39 55 36 44 - (‘000) (‘000) FY19 400 021 8,782 120 120 214 209 419 319 106 438 672 413 100 844 909 36 44 (‘000) (‘000) FY20 10,796 , Ph 1,076 1,414 250 270 377 434 572 720 576 619 119 130 219 - 40 43 022 2020 2020 ('000) As on June – 6611 1700, Extn. 12,196 1,119 1,941 269 302 412 566 639 749 767 778 119 135 235 43 46 on FY20 on FY20 Share as 100.0% Ashika Research Research Ashika 10.0% 13.1% 5.3% 2.3% 2.5% 3.5% 4.0% 5.3% 6.7% 5.7% 0.4% 0.4% 1.1% 1.2% 2.0% - 704 www.ashikagroup.com June 2020 June 2020 Share as on Active Active client addition Category 100.0% 15.9% 6.3% 2.2% 2.5% 3.4% 4.6% 5.2% 6.1% 6.4% 9.2% 0.4% 0.4% 1.0% 1.1% 1.9% FY19 CAGR - 309.0% 519.0% Equities - 39.5% 22.9% 19.6% 35.6% 18.2% 30.6% 27.5% 55.6% 11.1% - - 7.1% 2.3% 0.8% 8.3% 2.3% - 20 (FY15 CAGR 237.0% 145.0% 116.0% 29.0% 16.0% 17.0% 18.0% 20.0% 16.0% 16.0% 13.0% 23.0% - 8.0% 0.0% 1.0% 5.0% - 11% 10% 10% 20% 23% 25% 27% 20) 20) 0% 4% 4% 4% 6% 6% 7% 7% 8% 4 Ashika Stock Broking Limited Geojit IIFL Securities JM Financial Motilal SecuritiesICICI Angel Broking CoName Cash and cash equivalents at the endof the year Cash and cash equivalents at theof beginningthe year Net in increase/(decrease)and cash cash equivalents Cash flow from Financing Activities Cash flow from Investing Activities Cash flow from Operations Activities Source Net AssetValue per Share (Rs.) Return on Earnings Per Share (Rs.) Net Profit Margin (%) Net Profit EBITDA Margin (%) EBITDA RevenueGrowth (%) Revenuefrom Operations Total Assets Non Financial Assets Non Financial Liabilities Net Worth Share Capital Source Source (In Rs. Cr) Rs. (In (In Rs. Cr) Rs. (In Financial Comparison Cash - - financial Assets Financial Liabilities : Financial Financial Services : : RHP, Oswal RHP RHP 1008, Raheja 214,Centre, Nariman Point, Mumbai Flow Networth Ashika Financial Financial Services Research Statement Statement with (%) listed industry Net Net Sales (Rs. Cr.) 3432.0 2357.6 1719.1 305.4 723.9 724.6 FY16 1139.8 1139.8 440.7 440.7 992.5 147.2 758.2 369.3 51.4 51.4 31.7 19.3 84.9 12.3 14.4 peers 8.6 8.6 4.6 7.2 OPM (%) 33.4 49.4 73.4 34.8 52.4 21.9 - 400 021 FY17 1655.3 1655.3 1401.7 ROCE (%) 100.2 100.2 530.7 802.8 147.6 389.4 18.9 18.9 20.4 11.7 14.4 54.2 54.2 31.0 FY16 , Ph 8.0 8.0 4.6 5.8 14.0 29.1 13.6 39.9 17.1 (51.1) (15.4) (75.2) 106.3 106.3 9.8 55.2 55.2 39.6 - 022 RONW – (%) 6611 1700, Extn. FY17 (210.2) FY18 2378.7 2378.7 2229.5 1876.3 (49.3) 146.1 146.1 350.3 257.9 257.9 764.3 149.2 473.6 107.1 107.1 10.0 30.3 14.5 49.5 55.2 55.2 90.8 33.7 33.7 44.0 28.8 72.0 65.8 65.8 22.6 14.9 14.0 7.1 9.2 P/E (x) (x) FY18 (297.0) 14.4 15.3 43.5 24.8 23.1 Ashika Research Research Ashika (23.1) 123.0 123.0 146.1 232.5 8.4 41.4 41.4 FY19 - 2208.5 2208.5 2045.4 1645.4 704 www.ashikagroup.com 189.4 189.4 758.0 163.1 531.4 (0.8) 25.0 25.0 31.7 72.0 73.8 73.8 15.0 11.1 10.5 79.8 P/BV (x) (x) FY19 (365.5) 11.3 (19.4) 1.9 1.4 1.2 3.0 2.7 447.0 447.0 123.0 323.9 708.8 MCap FY20 2190.2 2190.2 2039.0 1560.8 (x) (x) - 158.5 158.5 724.6 151.2 591.4 FY20 (448.9) /Sales (4.4) Equities 21.9 21.9 37.9 72.0 82.2 82.2 13.9 11.4 11.4 82.3 (28.1) 613.2 613.2 447.0 166.3 643.3 3.0 1.8 2.6 3.8 8.3 3.5 Market Market Cap Q1FY21 Q1FY21 (Rs. Cr.) 15422.8 (290.0) 2995.7 2995.7 2848.1 2295.8 1257.7 7803.6 9604.5 2503.1 (97.6) 515.6 515.6 613.2 164.7 238.4 238.4 147.6 639.1 975.8 27.7 27.7 29.2 29.2 69.6 60.8 72.0 88.8 88.8 19.8 47.3 6.6 6.6 5 Ashika Stock Broking Limited rely damage public requirement person document The Disclaimer 8. 7. 6. 5. 4. 3. 2. 1. 2014 Research Disclosure matters There Corporate enumerated ASBL under including Ashika research on 1008, . recommendation Neither Research twelve months ASBL preceding The research report/ Research services ASBL than research ASBL ( ASBL company( financial ASBL is SEBI The were sources Stock their or . a that reports subject broking entity, wholly following Lending, ownership) or (Research or or or or or Raheja appearance . no own on months . may recommendations any Broking We research its its its their ASBL from its However report/ report that Analysts interest Desk) ies ies our significant the associates Research Research where are investigations will investment, owned associates, companies arise ) ) services, we Commodity apart Research website at the date Centre, 214,Centre, . disclosures nor being have Analyst) or . 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Mumbai solely may open by Research distributorship recommendation inadvertent managed appearance actions director essential an Securities or availability year preceding by guarantee ASBL been solicitation have integrated for virtue or & months stock or in for preceding of Other co investment other in the do - for do against 2015 the engaged 400 021 or actual Analysts their – part or the managed not of market (P) employee not investment . year 12 its error . personal or However Advisory co benefits their sole (Reg financial of have Ltd relatives) accuracy of of use – months have / managed ASBL the 1994 beneficial may any in any financial . , Ph , in have capacity position receiving would banking/ No a any the public date any Research information RBI market of action be . , Services ASBL's taken - from . 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The being of 1 it deposit advisor ASBL % banking, . of its compensation This have the ownership Extn report or funds, regulation securities interest alia associates have distributed / of shall in Analyst for more source authority report brokerage a been Ashika Research Research Ashika for . taking engaged interest this to or - in wide brokerage an recipient the is IPO 704 www.ashikagroup.com not /having the third the of in based report actual a of is research under for securities or & be bouquet companies client or NBFC the subject report/ not 1 from . during at parties Bonds) subject in % services in its the . the upon subject for / and a the The SEBI anyways or services Research potential Company of loan the subject time report more public recommendation company( business last does of ASBL . recipients in of the (Research to It . companies services connection transaction mentioned the company( became any of three of information and not responsible during distribution or company( . analysts conflict publication subject securities - registration ASHIKA of date construe ies for Equities years of Analyst) Investment to ) a other the ies in this mentioned “Research of its with company( of with in (forming the ) . ies GROUP except twelve . the obtained interest valued for of report to And, or of the products ) the Regulations past or the the in be use any the concerned licensing research report Banking, the the an (details months subject routine ies subject part Entity” twelve should clients source by loss in (other offer from ) past said and . any the or of 6 /