Prudent Corporate Advisory Services Limited (PCASL), a popular provider of integrated wealth management services, will open its initial public offering (IPO) on Tuesday, May 10. Founded in 2003, the company offers mutual fund products, life and non-life insurance, stock brokerage services, SIP with insurance, gold accumulation plan, asset allocation and trading platforms. Spread across the country, it is one of the fastest growing financial services companies. Should You Subscribe to Prudent Corporate Advisory Services’ IPO? Let’s look at the basics first
Prudent Corporate Advisory Services IPO Price, Issue Size, Other Details
The IPO of Prudent Corporate Advisory Services is an issue that is fully for sale. The promoters and shareholders are dissolving 85.5 lakh shares at a price range of Rs 595-630 each. Wagner will sell up to 82.8 lakh shares or 50 percent of his stake and Shirish Patel will sell about 2.68 lakh shares. You can bid on a minimum of 23 shares and then in multiples of 23. The maximum limit for retail investors is set at 13 lots. The company is aiming to collect Rs 538.61 crore from IPO which is at the top end of the price range. The company will not receive any proceeds from the issuance.
Prudent Corporate Advisory Services Limited IPO Quota
The Prudent Corporate IPO has reserved a 50 percent stake for Qualified Institutional Buyers (QIB). On the other hand, about 35 percent of the net offering is intended for retail investors. The non-institutional investors (NII) can bid on the remaining 15 percent of the offer.
Prudent Corporate Advisory Services Limited IPO Anchor Investors
Prudent Corporate Advisory Services collected Rs 159.43 crore from 24 anchor investors ahead of the launch of its first public offering. Marquee investors included HSBC, Kuber India Fund, Societe Generale, DSP Mutual Fund, Axis Mutual Fund, Nippon Life, L&T Mutual Fund, Motilal Oswal Mutual Fund, UTI MF, Aditya Birla Sun Life Trustee and Kotak Mutual Fund.
Prudent Corporate Advisory Services IPO Valuation
“At the high end of the price range, Prudent will trade for 9MFY2022 at a P/E multiple of 34.0x its annual EPS compared to Anand Rathi.
which is trading at a profit of 20.5xFY2022,” said Angel One.
Prudent Corporate Advisory Services IPO Financials
Prudent Advisory increased its AUM by a CAGR of 32.8 percent 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 Rs 321.2 crore while net profit of Rs 57.6 crore has already surpassed FY2021PAT of Rs 45.3 crore, Angel One said.
Prudent Corporate Advisory Services IPO GMP
Prudent Corporate is trading at a premium of Rs 30 in the gray market on Tuesday. The gray market premium often indicates how a stock will perform when listed.
Prudent Corporate Advisory Services IPO: Should You Invest?
“The company operates in an under-penetrated Indian asset management sector, which has achieved a CAGR of over 20 percent. Prudent has more than 2 decades of experience that has contributed to the integration of financial product distribution knowledge and expertise with technology, providing a comprehensive business platform. It provides digital wealth management solutions through platforms namely FundzBazar, PrudentConnect, Policyworld, WiseBasket and CreditBasket. Each platform is designed to provide mutual fund distributors (MFDs) and retail investors with a comprehensive range of financial services solutions, based on their investment needs. While the company has a strong financial track record, innovative technology and a huge distribution network of PAN India, the IPO is aggressively priced and leaves hardly anything meaningful on the table for investors with a medium-term perspective,” said Reliance Securities.
Read all the latest news, breaking news and IPL 2022 Live Updates here.