MUMBAI: Angel Broking, which proposes to enter into insurance and third-party products, plans to invest Rs 600 crore to complement its expansion plans that includes scaling up its branch network from 75 to 250 branches across the country in 3 years.
Angel is planning to raise Rs 250 crore from private equity investors and rest of the amount from internal accruals.
"We are planning to open 250 offices in the next three years, we also propose to venture into the distribution of insurance and other third-party products," Angel Broking's Chairman and Managing Director, Dinesh Thakkar said.
"We would be raising a fund by diluting 25 per cent of our stake in two tranches," Thakkar said adding the company is also planning a huge spend on its already robust online trading business.
"We anticipate investing Rs 600 crore to achieve our expansion plans over the next three years," Thakkar said adding we intend to raise Rs 150 crore in the immediate future, and Rs 100 crore further during the next year, the balance of the funding will be through internal accruals.
Immediately Angel is looking to tie-up with a foreign partner but more as a financial partner than a strategic one as it already has a robust and scalable business model and a format that has been very profitable.
In the coming year it plans to tie-up with a strategic partner that is willing to invest another Rs 100 crore.
Elaborating on his expansion plans Thakkar said, "As our service is liked by the space we serve, i.e. non-institutional clients, I think it makes business sense to open more offices in areas where we are not present".
The city-based broking house anticipates important advances in the scope of online services that it offered to the public and some new products getting popular among the investors.
"I see considerable demand for advisory-based services. I also forsee distributions of third party-products such as mutual funds and insurance, becoming very popular," Thakkar said.
"Traders will find commodities more attractive due to volatility and availability of future contracts in that segment," he added.
Thakkar anticipated significant growth in the brokerage business due to high investible income and the rapidly expanding middle class, which is bringing with it a huge expansion in the investor base.
"The new breed of investors wants more information at the click of a mouse button, brokerage houses are planning to invest heavily in current high-tech infrastructures to meet their aspirations and needs," he said adding brokerages are also spending on physical infrastructure to create wider geographical reach.
Angel has 2 lakh 20 thousand clients including the NRIs. The company is having a tie-up with the Bank of Bharain and Kuwait to serve the NRI clients.
