Prudent Corporate Advisory IPO | Review

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Prudent Corporate Advisory Services Limited has come up with an initial public offer (IPO). It will open on May 10-12, 2022 at Rs.595-630 a share. The IPO issue size is around Rs.535.50 crore. The minimum bid will be for 23 shares and in its multiples thereafter.

Overview

Prudent Corporate Advisory Services Limited was incorporated in 2003 and provides wealth management services to retailers. It is amongst the top mutual fund distributors in terms of average assets under management (“AAUM”) and commission received. It offers a technology-enabled, comprehensive investment and financial services platform with end-to-end solutions critical for financial products distribution and presence across both online and offline channels. The company grew faster among national distributors in terms of commission and AAUM with a CAGR of 34.4% and 32.5% respectively for the five-year period ending Fiscal 2021. It has provided wealth management services to 13,51,274 unique retail investors through 23,262 MFDs spread across branches in 110 locations in 20 states in India. It also distributes life and general insurance products in India. The company provides its services through various platforms, namely FundzBazar, PrudentConnect, Policyworld, WiseBasket, and CreditBasket.

Promoters

Sanjay Shah – 43.36%

Strength & Weakness

Strengths	Weaknesses
Operates in the underpenetrated Indian asset management industry	Competition from existing and new market participants
Growing independent financial products distribution platforms	Highly dependent on key management personnel
Track record of profitable growth	Direct investments in mutual funds
Innovation and use of technology	Highly regulated environment
Pan-India diversified distribution network	Dependent on certain AMCs
Granular retail AUM towards high-yield equity	There is an outstanding criminal case
Experienced management team	Highly dependent on information technology

Competitors

NJ IndiaInvest	Anand Rathi Wealth	IIFL Wealth Finance	Karvy Stock Broking
PayTM Money	FundsIndia	Groww	CAMS

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2019	225.06	21.02
31-Mar-2020	236.22	27.85
31-Mar-2021	294.90	45.30
31-Dec-2021	328.00	57.63

Object of Issue

1) To carry out the Offer for Sale.

2) Achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Prudent IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	23	Rs.14,490
Maximum	13	299	Rs.1,88,370

Prudent Corporate Advisory IPO Details

IPO Opening Date	10th May 2022
IPO Closing Date	12th May 2022
Face Value	Rs.5 per Equity Share
IPO Price	Rs.595-630 per share
Market Lot	23 shares
Minimum Order Quantity	23 shares
Listing At	NSE, BSE
No. of shares offered	85,49,340 shares
Issue Size	Up to Rs.538.50 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Discount

Employees – Rs.59 per share

Prudent Corporate Advisory IPO Timetable

IPO Date	May 10-12, 2022
Allotment Date	May 18, 2022
Initiation of Refunds	May 19, 2022
Credit of share to Demat a/c	May 20, 2022
IPO Listing Date	May 23, 2022