Prudent Corporate Advisory Services Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹630
Per ShareLot Size
23 Shares
Minimum Investment
₹14,490
Issue Size
₹508.69 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Prudent Corporate Advisory Services Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
43.36%
Issue Type
Book Building
ISIN
INE00F201020
About the Company
Prudent Corporate Advisory Services Limited is an independent retail wealth management services group in India and are amongst the top mutual fund distributors in terms of average assets under management ("AAUM") 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 both online and offline channels. It provided wealth management services to 1,351,274 unique retail investors through 23,262 MFDs on our B2B2C platform and is spread across branches in 110 locations in 20 states in India, as on December 31, 2021.
Industry Overview
The financial distribution industry in India has grown rapidly. In the long term, i.e. between March 2021 and March 2026, the overall industry's AUM is projected to sustain a high growth trajectory of 11-13% CAGR, reaching Rs. 57 trillion. National distributors ("NDs"), among others offer services such as execution of trades, account administration, in-depth investment research and custodian services. Typically, Independent financial advisors ("IFAs") and insurance agents cater to retail investors. So far, banks and NDs have dominated the mutual fund distribution industry, together accounting for Rs. 6.55 trillion of average AUM, as per AMFI's Commission Report of 2020-21.
Company History
The Company was incorporated on June 4, 2003, as `Prudent Corporate Advisory Services Limited', a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, Gujarat at Ahmedabad. The Company commenced its operations pursuant to a certificate for commencement of business dated June 20, 2003, issued by the RoC.
Products & Services
- The Company is an independent retail wealth management services group in India and is amongst the top mutual fund distributors in terms of average assets under management ("AAUM") and commission received.
Growth Strategy
- The Company intends to continue to focus on increasing geographic reach and strengthening relationships with MFDs
- The Company intends to leverage its existing MFD network to distribute products and services
- The Company intends to continue innovating its technology platforms to provide superior experience to its MFDs and their clients
- It intends to add new offerings to its existing portfolio
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 8,549,340# equity shares of face value of Rs. 5 each (the "Equity Shares") of Prudent Corporate Advisory Services Limited (The "Company") for cash at a price of Rs. 630 per equity share (including a share premium of Rs. 625 per equity share) aggregating to Rs. 537.94 crores# (the "Offer"), comprising an offer for sale of 8,281,340# equity shares aggregating to Rs. 521.07 crores# by Wagner Limited ("Wagner") and 268,000# equity shares aggregating to Rs. 16.86 crores# by Shirish Patel (together with Wagner, the "Selling Shareholders"). This offer included a reservation of 113,835# equity shares aggregating to Rs. 6.50 crores# (constituting up to 0.27% of the post-offer paid-up equity share capital of the company) for purchase by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer:. The offer and the net offer constitutes at least 20.65% and 20.37% of the post-offer paid-up equity share capital, respectively. # subject to finalization of the basis of allotment. The face value of the equity shares is Rs. 5 each. The offer price is 126 times the face value of the equity shares. Price Band:Rs. 630 per equity share of face value of Rs. 5 each. Bids can be made for a minimum of 23 equity shares and in multiples of 23 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- The Company operates in an underpenetrated Indian asset management industry, that has grown at a CAGR of more than 20%.
- The Company is a growing financial products distribution platform.
- It has a granular retail AUM with a mix skewed towards high-yield equity AUM.
- Its value proposition has led to increased participation and long-standing relationship with MFDs.
- It has a pan-India diversified distribution network with ability to expand into underpenetrated B-30 markets.
- The company operate in a highly regulated environment, which is subject to change, and existing and new laws, regulations and government policies affecting the sectors in which its operate could adversely affect its business, financial condition and results of operations.
- The company depend on its ability to attract and retain registered MFDs on its platforms and any inability to retain them may adversely affect its business and results of operations.
- Its inability to grow at its historical rates could adversely affect its business, results of operations and financial condition.
- Recommendations, suggestions and advice provided by MFDs using its platform to their clients may be subject to errors or fraudulent behaviour and are beyond its control and any resultant adverse impact to their clients could have an adverse impact on its reputation, business and results of operations.
- Competition from existing and new market participants in its line of business may affect its market share, or results of operations.