Prudent Corporate Advisory Services Ltd IPO - Details

Prudent Corporate Advisory Services Limited has fixed its IPO date. It will launch on 10 May 2022 and continue till 12 May 2022. The company plans to issue a pure offer for sale (OFS) of up to 85,49,340 equity shares to raise a fund of Rs. 538.61 crores.

In this IPO, Wagner Ltd. will offload 82,81,340 of its equity shares, while Shirish Patel (the director and chief officer of the company) will sell 2,68,000 equity shares. Also, the division of this IPO reserved for different categories of investors is 50% for QIB, 35% for RII and 15% for NII. Find more details about this IPO in the table below:

Issue Type

Book Built

Listing at

BSE and NSE

IPO Price Band

Rs. 595 to Rs. 630 per share

Face Value

Rs. 5

per equity share

Market Lot

23 shares

Minimum Order Quantity

23 shares

Issue Type

Book Built

Listing at

BSE and NSE

IPO Price Band

Rs. 595 to Rs. 630 per share

Face Value

Rs. 5

per equity share

Market Lot

23 shares

Minimum Order Quantity

23 shares

Listing at NSE, BSE

Important Dates for Prudent Corporate Advisory Services Limited IPO

IPO opens on 10 May 2022
IPO closes on 12 May 2022
Basis of Allotment publication date 18 May 2022
Credit of shares to Demat Account 20 May 2022
Initiation of Refund 19 May 2022
IPO listing 23 May 2022

View all upcoming IPOs

Prudent Corporate Advisory Services Limited IPO Latest News and Subscription Status Today [Live]

At 5:05:00 PM.
  • This IPO has been subscribed 1.22x by 5:05 PM. on Day 3
  • It is a public issue of 60,18,689 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 1.26x
  • (NII) Non-institutional buyers: 0.99x
  • (RII) Retail Individual buyers: 1.29x
  • Employees: 1.23x
At 10:50:00 AM.
  • This IPO has been subscribed 0.60x by 10:50 AM. on Day 3
  • It is a public issue of 60,18,689 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.20x
  • (RII) Retail Individual buyers: 1.10x
  • Employees: 0.72x
At 5:05:00 PM.
  • This IPO has been subscribed 0.57x by 5:05 PM. on Day 2
  • It is a public issue of 60,18,689 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.19x
  • (RII) Retail Individual buyers: 1.05x
  • Employees: 0.67x
At 11:50:00 AM.
  • This IPO has been subscribed 0.44x by 11:50 AM. on Day 2
  • It is a public issue of 60,18,689 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.03x
  • (RII) Retail Individual buyers: 0.86x
  • Employees: 0.42x
At 5:05:00 PM
  • This IPO has been subscribed 0.36x by 5:05 PM. on Day 1
  • It is a public issue of 60,18,689 equity shares.
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.02x
  • (RII) Retail Individual buyers: 0.72x
  • Employees: 0.35x
At 1:50:00 PM.
  • This IPO has been subscribed 0.28x by 1:50 PM. on Day 1
  • It is a public issue of 60,18,689 equity shares
Status of Subscription
  • (QIB) Qualified institutional buyers: 0.00x
  • (NII) Non-institutional buyers: 0.01x
  • (RII) Retail Individual buyers: 0.56x
  • Employees: 0.09x

About Prudent Corporate Advisory Services Ltd IPO

Incorporated in 2003, Prudent Corporate Advisory Services Limited is a leading retail management services group. It deals in different financial products like general and life insurance solutions, mutual fund products, SIP with insurance, stockbroking services, asset allocation, trading platforms and gold accumulation plan. This company now plans to grow further by taking the IPO route.

Objectives of Prudent Corporate Advisory Services Limited IPO

The initial public offering of Prudent Corporate Advisory Services Limited is entirely an offer for sale (OFS). Thus, the company will not receive the proceeds generated from this offering. It will go directly to the selling shareholders. However, there are other objectives that the company plans to achieve with this public issue:

  • Reap the benefits of listing its shares on the stock exchanges

  • Provide partial exit to the private equity firm

Why Should I Invest in Prudent Corporate Advisory Services Limited IPO?

Individuals can consider the following pointers before investing in this initial share sale.

  • Prudent Corporate Advisory Services Limited is one of the fastest-growing diversified financial services groups in India. 

  • The company has a strong operating team consisting of 17400+ highly qualified and trained channel partners. It also includes 980+ highly skilled professionals.

  • It has an extensive reach of customers as the company has 105 branches spread over 20 states.

  • The firm has the added benefit of an online presence offering digital management solutions through CreditBasket, PolicyWorld, PrudenConnect, FundzBazar, PruBazar, and WiseBazar.

  • It has shown remarkable growth over the years, having a CAGR of more than 20%.

Financial Highlights of Prudent Corporate Advisory Services Limited

It is always important to look into the financial highlights of the company while deciding to invest in its initial public offering. So, here is an insight into the total asset, total income and net profit of Prudent Corporate Advisory Services Limited over the last three years.

Financial Year Total Assets in Millions Total Income in Millions Profit After Tax in Millions
FY 2021 Rs. 2,849.30 Rs. 2,948.96 Rs. 452.97
FY 2020 Rs. 1,960.75 Rs. 2,362.20 Rs. 278.53
FY 2019 Rs. 1,932.15 Rs. 2,250.58 Rs. 210.19

How to Apply for Prudent Corporate Advisory Services Limited IPO?

There are two easy methods of applying for Prudent Corporate Advisory Services Limited IPO. One is through UPI, and the other is through a Demat account. Refer to the headings below to exactly know how to do it.

UPI

  • Link your bank account to a UPI ID.
  • Register your UPI id with your Demat account.
  • Subscribe for Prudent Corporate Advisory Services IPO and approve the payment on your UPI ID.

Demat Account

Noteworthy Highlights of Prudent Corporate Advisory Services Limited

Prudent Corporate Advisory Services Limited has achieved several noteworthy feats over its long course of operation. Some of them are mentioned below:

  • The company has a solid B2B2C network currently providing services to 13,51,274 unique retail investors via 23,262 channel partners. 

  • It is a distributing company that has spread its wings over the underpenetrated B-30 market. 

  • The company has a technological backup and a track record of innovations to satisfy its customers and improve overall returns. 

  • Prudent Corporate Advisory Services Limited maintains a long-standing relationship with the MFDs.

  • It holds granular retail AUM with a mix skewed relating to high-yield equity AUM. 

SWOT Analysis of Prudent Corporate Advisory Services Limited

The strengths, weaknesses, opportunities and threats of Prudent Corporate Advisory Services Limited are stated below.

Strength

    • The main operation area of Prudent Corporate Advisory Services Limited is the underpenetrated India asset management industry, which helps maintain a CAGR of 20%.

    • It comes under the top-ranked mutual fund distributors in terms of the commission received and the average asset under management (AAUM). 

    • Prudent Corporate Advisory Services Limited has a strong digital presence spread across 20 states. 

    • The company has a large assortment of policies to offer, amounting to 86000 policies. This includes both non-life and life insurance areas. It means it has a large target base. 

    • Prudent Corporate Advisory Services Limited is able to provide its customer with top-notch service with the help of a strong team. It includes more than 980 skilled professionals and 17400+ highly qualified, well-trained channel partners. 

Weakness

    • Prudent Corporate Advisory Services Limited has not yet succeeded in growing at a historical rate in terms of AUM. 

    • MFDs make suggestions, recommendations, and advice to clients using the platform that may be incorrect or involve some errors. Moreover, the company can't do anything about something that is beyond its control.

Opportunity

    • The company will continue benefiting from the increase in demand for SIP and MF products, as recorded in the last few years. 

    • With digitisation, Prudent Corporate Advisory Services Limited is expected to grow more with the help of its technology-driven investment and financial solutions. 

    • After the company's value proposition, the relationship with MFDs has grown stronger and led to increased participation.  

Threats

    • As the company runs under a highly regulated market, it must abide by all new and existing government rules. So, any change in policies will bring adverse effects on the profit margin of this company.

    • The return directly depends on whether the company can retain and attract new MFDs. In case of failure, it can impact business negatively.

    • If there is any change in the total expense ratio due to a change in regulations, it will reduce distribution commission income. This is because its income depends on AMCs and its sustained ability to improve AUM and fund performance.

Market Peers of Prudent Corporate Advisory Services Limited

The following are the market peers of Prudent Corporate Advisory Services Limited:

Company Name

Market Capitalisation

PAT Growth %

ICICI Securities Ltd.

Rs. 16,859.96 crores

(10.53)

IIFL Wealth Management Ltd.

Rs. 15,538.50 crores

7.33

Computer Age Management Services Limited

Rs. 11,834.64 crores

6.55

Central Depository Services (India) Limited

Rs. 13,119.45 crores

(2.55)

Nippon Life India Asset Management Ltd.

Rs. 19,183.03 crores

0.46

HDFC Asset Management Company limited

Rs. 42,458.43

(4.50)

UTI Asset Management Company Ltd.

Rs. 9,882.98

(57.33)

Frequently Asked Questions

When did Prudent Corporate Advisory Services Limited file its DRHP with SEBI?

Prudent Corporate Advisory Services Limited had filed its DRHP or draft red herring prospectus with SEBI (Securities and Board Exchange of India) back in August 2021 and received its nod in November 2021.

Who are the book-running lead managers of Prudent Corporate Advisory Services Limited IPO?

Axis Capital, ICICI Securities, and Equirus Capital are the book-running lead managers of Prudent Corporate Advisory Services Limited IPO.

What is the maximum order quantity of Prudent Corporate Advisory Services Limited IPO?

Individual investors can apply for a maximum of 299 shares of Rs. 5 each.

How much is Prudent Corporate Advisory Services Limited offering as an employee discount?

Prudent Corporate Advisory Services Limited is offering an employee discount of Rs. 59 per share in its IPO.

Who is the company promoter of Prudent Corporate Advisory Services Limited?

Sanjay Shah is the company promoter of Prudent Corporate Advisory Services Limited.

Who has been appointed as the registrar of Prudent Corporate Advisory Services Limited public issue?

Link Intime is the appointed registrar of the initial public offering of Prudent Corporate Advisory Services Limited.

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