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All About Prudent Corporate Advisory Services IPO

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Prudent Corporate Advisory Services IPO

Last Updated on Jun 14, 2022 by

Another day, another company to join the IPO game is Prudent Corporate Advisory Services Ltd. This financial advisory company made its market debut on 20 May 2022. The company, which was established in 2000, offers financial services to individuals, corporates, high-net-worth individuals and ultra-high-net-worth individuals. Read more about the company and its IPO debut.   

About Prudent Corporate Advisory Services

It is a flagship company under the Prudent Group. It started in 2000 and provides retail wealth management services along with products like mutual funds, equities, insurance, bonds, fixed-income products, loan products and properties. 

The company runs with a team of over 980 highly skilled professionals and more than 17,400 qualified and well-trained channel partners. Along with 105 branches in over 20 states serving 16,356 PIN codes in India, Prudent Corporate Advisory Services has a strong digital presence as well. In terms of the average AUM (Assets Under Management), the company is listed among the top 10 mutual fund distributors as of FY 2021. As of 31 December 2021, the company’s AUM from the mutual fund distribution was recorded at Rs 48,411.5 cr., and 92.14% of the total AUM was equity-oriented.


As of 31 December 2021, through 23,262 channel partners for mutual funds, Prudent Corporate Advisory Services provided services to 13,51,274 unique retail investors. They are even associated with 42 asset management companies as a distributor. The company holds 15.25 lakh SIPs and 35.05 lakh folios.

Prudent Corporate Advisory Services works with a vision to be the preferred financial services company that caters to the masses through technology. 

Prudent Corporate Advisory Services Management and Promoter Holdings 

  • Sanjay Singh is the Founder and Managing Director of the company. He is a Chartered Accountant by qualification who worked with several industries before setting up Prudent Group. 
  • Shirish Patel, the CEO of Prudent Corporate Advisory Services, has been part of the company since 2005. 

As part of OFS (offer for sale), Wagner Ltd from TA Associates sold 82,81,340 shares worth Rs 527 cr. in the IPO, and Shirish Patel sold 2,68,000 shares. 

About Prudent Corporate IPO 

After being in the financial services industry for more than two decades, Prudent Corporate  Advisory Services made itself public in 2022. The IPO details are as follows: 

  • The IPO type was a book building offer.
  • The opening date for this IPO was 10 May 2022, and the closing date was 12 May 2022. 
  • The company was listed on BSE and NSE. 
  • An employee discount of Rs 59 per share was provided.
  • The face value of each share was Rs 5 per share.
  • The set price band of this IPO was Rs 595 to Rs 630.
  • The issue size of this IPO was 8,549,340 shares of Rs 5, aggregating up to Rs 538.61 cr. 
  • The IPO was entirely offer for sale.  
  • The allocation happened on 18 May 2022, followed by refund initiation on 19 May 2022. Meanwhile, the credit of share in the Demat account happened on 20 May 2022. The final listing happened on 20 May 2022. 
  • One lot consisted of 23 shares and was worth Rs 14,490 at the upper range of the pricing band. 
  • The proceeds from the offer for sale were not received by the company; instead, the selling shareholders got it. 

As per the statement from BSE, Prudent Corporate Advisory Services allotted 25,30,651 equity shares at Rs 630 apiece and has raised Rs 159.43 cr. from 24 anchor investors. On the listing day, on the BSE, the opening value per share was Rs 660, at a premium of 4.7% over its issue price. While on the NSE, the listing price was Rs 650, 3.2% more than the issue price. On 12 May 2022, the last day, the IPO was subscribed 1.22 times, and the market cap was recorded at around Rs 2,350 cr. 

Book running lead managers and registrar 

The book running lead managers of the Prudent Corporate Advisory Services Ltd IPO were ICICI Securities Ltd, Axis Capital Ltd and Equirus Capital Pvt. Ltd, while Link Intime is the registrar.


Reservation of Prudent Corporate Advisory Services IPO 

  • The retail investors got 1.29 times their reserved part which is 35%. 
  • The employees bid for 1.23 times their portion. 
  • Qualified institutional buyers (QIB) got half of the offer reserved and were booked 1.26 times. 
  • 15% was reserved for the non-institutional investors of which 99% was booked. 

Financials of Prudent Corporate Advisory Services Ltd  

The following are the financials of Prudent Corporate Advisory Services Ltd for FY 2019, 2020, and 2021.

Particulars For FY 2019 (Rs in cr.)For FY 2020 (Rs in cr.)For FY 2021 (Rs in cr.)
Total assets193.22196.08284.93
Total revenue221.98234.83286.51
Profit after tax (PAT)21.0227.8545.30

Peer comparison 

According to the offer paperwork, Prudent Corporate Advisory Services Ltd listed ICICI Securities, IIFL Wealth Management Ltd, UTI Asset Management Company Ltd, Central Depository Services (India) Ltd, Computer Age Management Services Ltd, Nippon Life Asset Management Company Ltd, and HDFC Asset Management Company Ltd as their peers. However, there is no like for like basis comparison. 

Strengths of Prudent Corporate Advisory Services Ltd 

  • The company is one of the fastest-growing financial products and services platforms in India, with a CAGR of more than 20%.
  • The company has a presence all over India with 23,262 mutual funds channel partners. 
  • The company is operating in the underpenetrated asset management sector in the country. 
  • The company uses technology to improve the experience for partners and investors.
  • The company has a diversified distribution network across the country that expands into underpenetrated B-30 markets. 

Risks of Prudent Corporate Advisory Services Ltd 

Investments in equities and equity-related securities involve risk. Therefore, investors should also consider the risk factors before proceeding with an investment. 

  • Operates in a highly regulated market which involves several laws and regulations from the government. 
  • Works in an industry with heavy competition from banks, financial institutions and other wealth management firms. 
  • Most of the revenue is generated from the commission and fee-based income. 

How to buy Prudent Corporate Advisory Services Ltd shares? 

Prudent Corporate Advisory Services Ltd shares can be easily bought on Tickertape.  

Here’s a step-by-step guide for purchasing the stock: 

  • Analyse all the details with respect to the stock, such as the stock forecast, peer information, and key metrics. 
  • You can also check the financials of the company, which is essential while investing in a stock. 
  • Click on ‘Place Order’. 
  • Select the quantity of the stocks and complete the purchase. 

Conclusion

Investments are exposed to different kinds of risks. Before investing in any stock, make sure you evaluate your investment goal and the risk appetite.

FAQs 

1. What is Prudent Corporate Advisory Services Ltd IPO? 

IPO stands for Initial Public Offering where a private company sells its shares to the public. Prudent Corporate Advisory Services Ltd, the wealth management firm listed its IPO in May 2022 on BSE and NSE. 

2. What is a book building offer? 

Book building is a process used by an underwriter to determine the price at which an IPO will be offered. 

3. How many lots can a retail investor buy on Prudent Corporate Advisory Services Ltd?  

On Prudent Corporate Advisory Services Ltd, a retail investor can get about 13 lots where each lot contains 23 shares.

4. Are Prudent Corporate Advisory Services Ltd shares listed on exchanges? 

Yes. Since 23 May 2022, Prudent Corporate Advisory Services Ltd shares are available for trading on stock exchanges.

5. Who are the lead managers for Prudent Corporate Advisory Services Ltd? 

The lead managers for Prudent Corporate Advisory Services Ltd during the issue are ICICI Securities Ltd, Axis Capital Ltd and Equirus Capital Pvt. Ltd. 

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