Prudent Corporate Advisory IPO Details

Prudent Corporate Advisory IPO Details

Let's have a detailed review of the Company and analytics of the Prudent Corporate Advisory IPO release date, IPO offer price, subscription, Prudent Corporate Advisory Services IPO allotment, grey market price, and other details like the Company's background, its financial positions, its promoters, and other related things.

Face ValueRs 5
Price BandRs [●]
Listing AtBSE, NSE
Min. Order QuantityNA
Listing DateNA
Offer for SaleRs Million
Fresh IssueRs Million
IPO SizeRs Million
Tick Size1

Prudent Corporate Advisory IPO – Summary

They are one of India's largest independent retail wealth management services groups (excluding banks and brokers). They are among the top mutual fund distributors regarding average assets under management ("AAUM") and commission received.

They offer 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. Also, they are the fastest growing national distributor (amongst the top 10 mutual fund distributors) in terms of commission and AAUM with a CAGR of 34.4% and 32.5%, respectively, for the five years ending Fiscal 2021.

The Promoter of this Company is SANJAY SHAH. The lead manager to the issue is ICICI Securities Limited, Axis Capital Limited, and Equirus Capital Private Limited, and the Registrar to this issue is Link Intime India Private Limited.

Prudent Corporate Advisory IPO Date

The opening and the closing date of Prudent Corporate Advisory IPO are not available yet.

Prudent Corporate Advisory IPO Price Band

The face value of each share is Rs.5, but the price band of the IPO is Rs.[●] 

Prudent Corporate Advisory IPO Size

This Initial Public Issue of 8,549,340 Equity Shares of Rs.5 each for cash for Rs.[●]  per equity share aggregating to Rs.[●] Million.

Prudent Corporate Advisory IPO Share Offering

Fresh Issue: The Issue (excluding the Market Maker Reservation Portion) of [●] Equity Shares of Rs.5/ each.

Issue Size: X Equity Shares of Rs.5 each, aggregating to Rs.[●] Million

Prudent Corporate Advisory IPO – Company Overview

They believe they have become an essential interface between asset management companies ("AMCs") and mutual fund distributors or independent financial advisors ("MFDs") over the last two decades. They are an independent platform with no single AMC contributing more than 15% of their AUM as of May 31, 2021.

Incorporated in 2003, they provided wealth management services to 772,899 unique retail investors through 17,583 MFDs on their business-to-business-to-consumer ("B2B2C") platform and are spread across branches in 105 locations in 20 states in India, as of May 31, 2021.

They believe that their technology platform has given them wider acceptability amongst MFDs in the industry. As of March 31, 2021, 111,000 AMFI Registration Number ("ARN") holders were registered with AMFI, while the number of ARNs empanelled with them stood at 17,583, representing 15.84% of the industry.

As per CRISIL, 70,049 MFDs have joined the industry during the five years between 2016 and 2021.

Prudent Corporate Advisory IPO – Financial Statements

A quick look into the past financial performance of the Company to understand its version of the business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR & Million)
31-Mar-2131-Mar-20Mar-19
Total Assets2,849.301,960.751,932.15
*Total Revenue2,948.962,362.202,250.58
Total Expense2,343.721,987.861,944.87
Profit After Tax452.97278.53210.19
Earnings per Equity Share (in Million)

31-Mar-2131-Mar-20Mar-19
Basic10.966.745.08
Diluted10.946.735.08
Further, their PAT for the period ended on March 31, 2021, March 31, 2020, and March 31, 2019, were Rs. 452.97 Million, Rs. 278.53 Million, and Rs. 210.19 Million respectively.

Prudent IPO – Promoters

The Promoter of this Company is:

  1. SANJAY SHAH
  • Sanjay Shah, Chairman and Managing Director
  • Shirish Patel, Whole-time Director and Chief Executive Officer
  • Chirag Shah, Whole-time Director
  • Dhiraj Poddar, Non-executive Director
  • Deepak Sood, Independent Director
  • Karan Kailash Datta, Independent Director

Prudent Advisory IPO – Promoters Holding

  • Pre Issue Share Holding – %
  • Pos Issue Share Holding – %

Diplomatic IPO Offer Details or Issue Details

 Particulars No. Of Equity Shares
 Equity Shares Offered Up to 8,549,340 Equity Shares aggregating up to Rs.[●] Million
of which:
Issue Reserved for the Market MakersUp to [●] Equity Shares aggregating up to Rs.[●]
Million
Net Issue to the PublicUp to [●] Equity Shares aggregating up to Rs.[●]
Million
Of which:
Retail Investors PortionNot less than [●] Equity Shares
Other than Retail Individual InvestorsNot more than [●] Equity Shares
 Equity Shares outstanding before the Issue41,344,000 Equity Shares
 Equity Shares outstanding after the Issue41,344,000 Equity Shares

Prudent Advisory IPO Issue Object

Their Company proposes to utilize the Net Proceeds towards funding the following objects:

1. To carry out the Offer for Sale;

2. To achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Prudent Corporate IPO – Business Strategy

  • They intend to continue to focus on increasing geographic reach and strengthening relationships with MFDs
  • They intend to leverage their existing MFD network to distribute products and services.
  • Also, they intend to continue innovating their technology platforms to provide a superior experience to their MFDs and their clients.
  • They intend to add new offerings to their existing portfolio

Prudent Corporate Advisory IPO – Basis of Offer Price

The Company determines the issue price in consultation with the Lead manager based on qualitative and quantitative factors.

Qualitative factors are:
  • They operate in an underpenetrated Indian asset management industry that has grown at a CAGR of more than 20%
  • They are one of the largest and fastest-growing financial products distribution platforms.
  • Have a granular retail AUM with a mix skewed towards high-yield equity AUM
  • Their value proposition has led to increased participation and a long-standing relationship with MFDs
  • They have a track record of innovation and use of technology to improve investor and partner experience
  • They have a pan-India diversified distribution network with the ability to expand into underpenetrated B-30 markets
  • Have demonstrated a consistent track record of profitable growth due to a highly scalable, asset-light, and cash generative business model
  • They have an experienced management team and are backed by a global investor
The relevant quantitative factors are:

Basic EPSDiluted EPS
ROW (%)NAV (Rs.)
31-Mar-2110.9610.9428.7338.13
31-Mar-206.746.7324.75–
Mar-195.085.0825.30–

Prudent Advisory IPO: Competitive Peers

Face Value (Rs.)P/EBasic EPS  (Rs.)Basic EPS  (Rs.)
Return on Net Worth (%)Total Income (Rs. in Millions)
Prudent Corporate Advisory Limited5[●]10.9610.9428.732,948.96
Listed Peers
IIFL Wealth Management Ltd239.0x42.2441.7613.0616,590.20
ICICI Securities Ltd521.4x33.1433.085.8625,861.70
Central Depository Services (India) Limited1069.7x19.1719.1721.884,006.33
Computer Age Management Services Limited1078.3x42.0841.9339.807,352.55
HDFC Asset Management Company Limited547.0x62.2862.1627.7622,017.40
Nippon Life India Asset Management Ltd1036.5x11.0410.921.9114,193.40
UTI Asset Management Company Ltd1036.5x38.9738.9715.2711,986.30

Prudent Advisory IPO Lead Managers

Lead Managers
ICICI Securities Limited

Axis Capital Limited

Equirus Capital Private Limited


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