Prudent Corporate Advisory Services Limited-IPO – Globe Capital
Prudent Corporate Advisory Services Limited-IPO
Closed
Price Band
Rs. 595 – 630
IPO Issue Period
May 10, 2022 to May 12, 2022
Issue Size
Rs. 538.61 Cr.
Face value
Rs. 5 /-
Fresh issue
NIL
Offer for sale
538.61 Cr.
Minimum Shares for Retail
23 shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Link Intime India Private Ltd
Tentative Listing Date
May 23, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

ICICI Securities Limited (Past IPO Performance)
Axis Capital Limited (Past IPO Performance)
Equirus Capital Private Limited (Past IPO Performance)

Incorporated in 2003, Prudent Corporate Advisory Services Limited provides retail wealth management services. The company offers Mutual Fund products, Life and General Insurance solutions, Stock Broking services, SIP with Insurance, Gold Accumulation Plan, Asset Allocation, and Trading platforms.

The company offers digital wealth management (DWM) solutions through platforms, namely, FundzBazar, PrudentConnect, Policyworld, WiseBasket and CreditBasket.

Prudent Corporate Advisory Services provides investment and financial services platforms for the distribution of financial products through online and offline channels. Prudent Corporate Advisory Services is amongst the top 10 mutual fund distributors in terms of average assets under management AUM as of FY21.

As of December 31, 2021, Prudent Corporate Advisory Services provided wealth management services to 13,51,274 unique retail investors through 23,262 channel partners on the business-to-business-to-consumer (B2B2C) network, which is spread across 110 branches in 20 Indian states. The company is also associated as a distributor with 42 AMCs.

Prudent Corporate Advisory Services Limited is one of India’s leading independent and fastest-growing financial services groupsThe company has built a nationwide network, servicing 16,356 PIN codes. Prudent Corporate Advisory Services has 1,067 employees strength, 35.05 lakhs live folios and 15.25 lakhs live SIPs as of December 31, 2021

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 286.51 234.83 221.98
Profit After Tax 45.30 27.85 21.02
EPS 10.96 6.74 5.08
OPM (%) 21.61% 19.87% 17.21%
PATM (%) 15.81% 11.86% 9.47%
  • The company operate in an underpenetrated Indian asset management industry, that has grown at a CAGR of more than 20%.
  • Growing independent financial products distribution platforms.
  • The company have a granular retail AUM with a mix skewed towards high-yield equity AUM.
  • The value proposition has led to increased participation and a long-standing relationship with MFDs.
  • The company have a track record of innovation and use of technology to improve investor and partner experience.
  • Pan-India diversified distribution network with the ability to expand into underpenetrated B-30 markets.
  • The company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.

The Company is operating in a competitive field and the IPO is fully priced based on its super earnings. The sustainability of such margins in bad times raises concern as its future prospects hinge on market behaviour. Hence cash surplus investors may consider investing in this issue for the long term.

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