Prudent Corporate Advisory Services Limited IPO (Prudent Corporate Advisory Services IPO) Details
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 groups. The 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.
Competitive Strengths:
- 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.
Company Financials:
| Particulars | For the year/period ended (₹ in million) | |||
|---|---|---|---|---|
| 31-Dec-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 3,873.40 | 2,849.30 | 1,960.75 | 1,932.15 |
| Total Revenue | 3,279.98 | 2,948.96 | 2,362.20 | 2,250.58 |
| Profit After Tax | 576.28 | 452.97 | 278.53 | 210.19 |
Objects of the Issue:
The company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.
Prudent Corporate Advisory Services IPO Details
| Prudent Corporate Advisory Services IPO Date | May 10, 2022 to May 12, 2022 |
| Prudent Corporate Advisory Services IPO Face Value | ₹5 per share |
| Prudent Corporate Advisory Services IPO Price | ₹595 to ₹630 per share |
| Prudent Corporate Advisory Services IPO Lot Size | 23 Shares |
| Issue Size | 8,549,340 shares of ₹5 (aggregating up to ₹538.61 Cr) |
| Offer for Sale | 8,549,340 shares of ₹5 (aggregating up to ₹[.] Cr) |
| Employee Discount | Rs 59 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| Company Promoters | Sanjay Shah is the company promoter. |
Prudent Corporate Advisory Services IPO Timeline (Tentative Timetable)
Prudent Corporate Advisory Services IPO opens on May 10, 2022, and closes on May 12, 2022. The Prudent Corporate Advisory Services IPO bid date is from May 10, 2022 10.00 A.M. to May 12, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Prudent Corporate Advisory Services IPO Opening Date | May 10, 2022 |
| Prudent Corporate Advisory Services IPO Closing Date | May 12, 2022 |
| Basis of Allotment | May 18, 2022 |
| Initiation of Refunds | May 19, 2022 |
| Credit of Shares to Demat | May 20, 2022 |
| Prudent Corporate Advisory Services IPO Listing Date | May 23, 2022 |
Prudent Corporate Advisory Services IPO Lot Size
The Prudent Corporate Advisory Services IPO lot size is 23 shares. A retail-individual investor can apply for up to 13 lots (299 shares or ₹188,370).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 23 | ₹14,490 |
| Maximum | 13 | 299 | ₹188,370 |
Prudent Corporate Advisory Services IPO Promoter Holding
| Pre Issue Share Holding | 56.78% |
| Post Issue Share Holding | 56.78% |
Prudent Corporate Advisory Services IPO Review
PCASL 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. Cash surplus/risk seeker investors may consider a moderate investment with a long-term perspective
