Prudent Corporate Advisory Services Ltd. IPO

Prudent Corporate Advisory Services Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹630

Issue Price

Listing Price

₹660

Listing Price

Listing Gains

+₹30.00 (+4.76%)

Listing Gains

IPO Details

Bidding Dates

10 May - 12 May '22

Bidding Dates

Min. Investment

₹13,685

Min. Investment

Lot Size

23.00

Lot Size

Price Range

₹595 - ₹630

Price Range

Issue Size

358 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate - Prudent Corporate Advisory Services Ltd. IPO

  • Retail Individual Investor
    1.29x
  • Non-Institutional Investor
    0.99x
  • Qualified Institutional Buyers
    1.26x
  • Employees
    1.23x


About Prudent Corporate Advisory Services Ltd. IPO

Prudent Corporate Advisory Services Limited is a retail wealth management services provider and offers mutual fund products, stock broking services, general insurance solutions, asset allocation, trading platforms, SIP with Insurance and Gold Accumulation Plan. The company is amongst the top 10 mutual fund distributors in terms of average assets under management AUM as of FY21. It offers digital wealth management (DWM) solutions through platforms such as FundzBazar, PrudentConnect, Policyworld, WiseBasket and CreditBasket. Prudent Corporate Advisory Services provided wealth management services to 13,51,274 unique retail investors through 23,262 channel partners as of December 31, 2021. The company’s business-to-business-to-consumer (B2B2C) network is spread across 110 branches in 20 Indian states. It is also associated as a distributor with 42 AMCs. Prudent Corporate Advisory Services IPO opened for subscription on May 10 and will close on May 12. The company has fixed the price band for the issue at Rs 595-630 per share. The issue comprises an offer-for-sale of up to 85.49 lakh shares by shareholders and promoters and the company will not get any proceeds from the issue. At the upper end of the price band, the company expects to raise around Rs 538.61 crore from the IPO. In the OFS, Wagner Ltd will sell up to 82.8 lakh shares or 50% of its stake and Shirish Patel will sell around 2.68 lakh shares. Wagner holds a 40% stake, while Patel holds a 3.15% stake in the company. Prudent Corporate Advisory Services has already raised Rs 159.43 crore from 24 anchor investors at the upper price band of Rs 630 per equity share on May 9.

Why should you invest in Prudent Corporate Advisory Services Ltd. IPO?

Prudent Corporate Advisory Services operates in an underpenetrated Indian asset management industry, that has grown at a CAGR of more than 20%. The company has a granular retail AUM with a mix skewed towards high-yield equity AUM and has a track record of innovation and use of technology to improve investor and partner experience. It has a pan-India diversified network with the ability to expand into underpenetrated B-30 markets.


SWOT Analysis - Prudent Corporate Advisory Services Ltd. IPO

Strengths

Prudent Corporate Advisory Services operates in an underpenetrated Indian asset management industry. Its AUM has grown at a CAGR of 32.8% between March 2018 and December 2021. The company had a market share of 12% within the national distributor segment on AUM basis as of Fiscal 2021.

Weaknesses

The company operates in a highly regulated environment. The existing and the potential clients of the company may get involved in direct investments in mutual funds.

Opportunities

The company has a significant potential to launch newer products and enter into newer segments with increasing financialisation of investments and a greater understanding of financial investments among Indians. The use of technology in other businesses provides an opportunity for the company to optimise its operations, reduce costs and errors in the areas of sales, customer relationship, information security and risk management. 

Threats

A show-cause notice was issued by the Joint Commissioner, Central Goods and Service Tax and Central Excise to the company pursuant to its acquisition of the mutual fund folios of Karvy Stock Broking Limited. Also, there is outstanding litigation against the company and its subsidiaries.

 

Prudent Corporate Advisory Services Noteworthy Highlights

Check out some of the key details and information about Prudent Corporate Advisory Services before investing:

- Prudent Corporate Advisory Services is one of the very few national distributors (non-bank) with a strong presence in the B-30 market. It caters to retail investors in more than 16,356 pin codes across India

- The company has benefited from the strategic inputs and support of marquee financial investor, Wagner, a member of global investment fund TA Associates 

- In the IPO, the company has reserved 50% of the offer for qualified institutional buyers (QIB), around 35% for retail investors and the remaining 15% for non-institutional investors (NII). 

- The IPO lot size is 23 shares and a retail-individual investor can apply for up to 13 lots.

- The employees of the company will get a discount of Rs 59 per share.



How to apply for Prudent Corporate Advisory Services Ltd. IPO?

You can apply for the Prudent Corporate Advisory Services Ltd. IPO in these ways:

UPI
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Frequently Asked Questions (FAQs) - Prudent Corporate Advisory Services Ltd. IPO

Who are the Prudent Corporate Advisory Services IPO Lead Managers?

ICICI Securities, Axis Capital and Equirus Capital are the book running lead managers to the issue.

Who is the registrar of the issue?

Link Intime is the registrar of the issue.

 

What is Prudent Corporate Advisory Services IPO Minimum and Maximum Lot Size?

The IPO lot size is 23 shares and a retail-individual investor can apply for up to 13 lots.

How much is the reserved portion for Employees of the company in the IPO?

Prudent Corporate Advisory Services has reserved shares worth Rs 6.50 cr. for its eligible employees and is offering them a discount of Rs 59 per share.

Who are the anchor investors of Prudent Corporate Advisory Services?

Some of the anchor investors include DSP Small Cap Fund, Axis Mutual Fund Trustee, HDFC Mutual Fund, Nippon Life India Trustee Ltd, L&T Mutual Fund Trustee, Quant Mutual Fund, Canara Robeco Mutual Fund, UTI Banking and Financial Services Fund, Aditya Birla Sun Life Trustee Private Limited, HSBC Small Cap Equity Fund, Kotak Equity Hybrid and Societe Generale.

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