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Prudent Corporate Advisory Services IPO: Everything you need to know

Prudent Corporate Advisory Services IPO: The Rs 538.61 crore initial public offering (IPO) of retail wealth management firm Prudent Corporate Advisory Services is available from May 10-12, 2022. It has a price band of Rs 595-630 per share.

Prudent IPO, Prudent Corporate IPOPrudent Corporate Advisory Services is one of the leading independent retail wealth management services groups (excluding banks) in India. (Image: Facebook/Prudent Corporate Advisory Services)

Prudent Corporate Advisory Services IPO: The initial public offering (IPO) of retail wealth management firm Prudent Corporate Advisory Services has opened for subscription today, May 10, 2022.

The Rs 538.61 crore Prudent Corporate Advisory Services IPO will be available for subscription till Thursday, May 12, 2022, and the price band of the company has been fixed at Rs 595-630 per share.

Prudent Corporate Advisory Services is one of the leading independent retail wealth management services groups (excluding banks) in India and is among the top mutual fund distributors in terms of average assets under management and commission received. The company offers a technology-enabled, comprehensive investment and financial services platform with end-to-end solutions critical for financial products distribution and presence across online and offline channels.

The IPO is an offer for sale of up to 82,81,340 equity shares by Wagner Ltd and up to 2,68,000 equity shares by Shirish Patel. The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholders.

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Presently, investor Wagner owns 39.91 per cent shareholding, and Shirish Patel, a Whole-time Director and CEO of the company, has 3.15 per cent stake.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors who wish to subscribe to Prudent IPO can bid in a lot of 23 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,490 to get a single lot of Prudent Corporate Advisory Services. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

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The applicants also must note that the cut-off time for UPI mandate confirmation is Friday, May 13, 2022, upto 12:00 pm. If they fail to do so then their application may not be considered.

Equirus Capital, ICICI Securities and Axis Capital are the book running lead managers to the offer while Link Intime India is the registrar of the issue.

Before heading into the IPO, Prudent Corporate Advisory Services on Monday raised over Rs 159 crore (Rs 1,59,43,10,130) from 24 anchor investors in lieu of 25,30,651 equity shares at Rs 630 each, data from the stock exchanges showed.

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The anchor investors include the likes of Societe Generale, Kuber India Fund, DSP Mutual Fund (MF), HDFC MF, Axis MF, L&T MF, UTI MF, Canara Robeco MF, Motilal Oswal MF, Aditya Birla Sun Life MF, Kotak MF and HSBC MF.

The research team at Anand Rathi Share and Stock Brokers in their IPO note have recommended a “Subscribe” to the offer with a long term horizon.

Anand Rathi Research in its report noted, “At the upper end of the IPO price band, Prudent Corporate Advisory Services Ltd. is offered at P/E of 33.9x its FY22 annualised earnings, with a market capitalization of Rs 26,086 million. The company has a scalable and asset-light model in a high growth underpenetrated Indian asset management industry with diversified distribution network. The company reported RoNW of 28.73 per cent in FY21. However, the IPO is richly priced and the company will have to continue growing its business at a high growth rate, in order to justify the valuations – hence we give the IPO a “Subscribe (Long Term)” rating.”

The share allotment is likely to take place on Wednesday, May 18, 2022, and the shares are expected to be listed on Monday, May 23, 2022, according to the timeline given in the red herring prospectus (RHP).

First published on: 10-05-2022 at 15:42 IST
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