Prudent Business Advice IPO: It’s raining again IPOs in India, with several companies making their first share sale to the stock exchange. On Tuesday, May 10, Prudent Corporate Advisory Services Ltd (PCASL), provider of integrated wealth management services, will offer its initial public offering (IPO) for three days until May 12. Prudent Corporate Advisory Services provides investment and financial services platforms for the online and offline distribution of financial goods. It does this through platforms such as FundzBazar, PrudentConnect, Policyworld, WiseBasket, Prubazar, and CreditBasket. The company’s activities mainly concern the distribution of mutual funds.
Here’s everything you need to know about Prudent Corporate Advisory’s IPO:
- Prudent Corporate Advisory IPO Date: The Prudent Corporate Advisory IPO opens May 10 and closes May 12 after three days of bidding. The anchor investment will open Monday, May 9. The posting date is tentatively May 23.
- Prudent Corporate Advisory IPO Scope: At the higher end of the price range, the company appears to be raising Rs 538.61 crore through the IPO. It is entirely an offer for sale (OFS) of 85,49,340 shares.
- Prudent Corporate Advisory IPO Award: The price range of the Prudent Corporate Advisory IPO is set at Rs 595-630 per share share. Selling shareholder Wagner will sell 8.28 million shares or 50 percent of his stake, while CEO Shirish Patel will sell 2.68 lakh shares.
- Prudent Corporate Advisory Services IPO Lot Size: Investors can bid on 23 shares for one lot, at a value of Rs 14,490 per lot, then in multiples of 23. The maximum limit is 13 lots per investor, according to the RHP.
- Prudent IPO Quota: The Prudent Corporate IPO has reserved a 50 percent stake for Qualified Institutional Buyers (QIB). On the other hand, private investors have been allocated 35 percent of the shares, while the non-institutional investor portion comprises the remaining 15 percent.
- Prudent Corporate Advisory IPO GMP today: The gray market premium (GMP) of Prudent Corporate Advisory IPO was Rs 30, according to IPO Watch. The Prudent Corporate IPO GMP today was Rs 30 meaning the IPO is trading at the high end of the price band at Rs 660 each.
- Prudent Corporate Advisory IPO Objective: Since the entire offer is an OFS, the company will not receive any proceeds from the IPO. The aim is, among other things, to execute the offer for sale by shareholders and to realize the benefits of the stock exchange listing of the shares.
- Prudent Corporate IPO Key Strengths: The company operates in an under-penetrated Indian asset management sector that has grown at a CAGR of over 20 percent. The company also has a track record of innovation and using technology to enhance the investor and partner experience.
- Prudent Corporate Advisory Services Financials: Prudent Advisory grew its AUM at a CAGR of 32.8% between March 2018 and December 2021. In addition, the company has grown its revenues and profits at a CAGR of 13.6% and 46.8 percent between FY2019 and FY2021, despite the negative impact of Covid-19. For 9MFY2022, Prudent has reported revenue of `321.2 crore, while has already surpassed the net profit of `57.6 crore FY2021PAT of `45.3 crore.
- Should you subscribe?: “We believe that Prudent has a very strong retail business model that gives them a clear competitive advantage and will be difficult to replicate. However, valuations are on the higher side compared to peers, which will limit earnings in the near term and so we have a NEUTRAL recommendation for the IPO,” AngelOne said in a note on Prudent Corporate Advisory IPO.
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