Prudent Corporate Advisory IPO Opens Tomorrow: GMP, Price, Size, 10 Things to Know

Prudent Corporate Advisory IPO: It is raining IPOs again in India, with several companies floating their initial stake sale to list on bourses. On May 10, Tuesday, integrated wealth management service provider Prudent Corporate Advisory Services Ltd (PCASL) will float its initial public offering (IPO), for three days till May 12. Prudent Corporate Advisory Services provides investment and financial services platforms for the online and offline distribution of financial goods. It does so through platforms including FundzBazar, PrudentConnect, Policyworld, WiseBasket, Prubazar and CreditBasket. The company’s business primarily involves in distribution of mutual funds.

Here is everything you need to know about Prudent Corporate Advisory IPO:

1. Prudent Corporate Advisory IPO Date: The Prudent Corporate Advisory IPO will open on May 10 and close on May 12 after three days of bidding. The anchor investment will open on May 9, Monday. The listing date is tentatively May 23.
2. Prudent Corporate Advisory IPO Size: At the upper end of the price band, the company looks to raise Rs 538.61 crore through the IPO. It is entirely an offer for sale (OFS) of 85,49,340 equity shares.
3. Prudent Corporate Advisory IPO Price: The price band of the Prudent Corporate Advisory IPO has been fixed at Rs 595-630 per equity share. Selling shareholder Wagner will offload 8.28 million shares or 50 per cent of its stake, while CEO Shirish Patel will sell 2.68 lakh shares.
4. Prudent Corporate Advisory Services IPO Lot Size: Investors will be able to bid for 23 shares for one lot , at a value of Rs 14,490 per lot, and in multiples of 23 thereafter. The maximum limit is 13 lots per investor, as per the RHP.
5. Prudent IPO Quota: The Prudent Corporate IPO has reserved 50 per cent stake for qualified institutional buyers (QIB). On the other hand, retail investors have been allocated 35 per cent of the shares, while non institutional investors portion comprises of the remaining 15 per cent.
6. Prudent Corporate Advisory IPO GMP Today: The grey market premium (GMP) of Prudent Corporate Advisory IPO was Rs 30, as per IPO Watch. The Prudent Corporate IPO GMP today was Rs 30, which means at the upper end of the price band, the IPO is trading at Rs 660 apiece.
7. Prudent Corporate Advisory IPO Objective: Since the entire offer is an OFS, the company will not receive any proceeds from the IPO. The objective includes to carry out the offer for sale by shareholders, and achieve the benefits of listing the equity shares on the stock exchanges.
8. Prudent Corporate IPO Key Strengths: The company operates in an underpenetrated Indian asset management industry that has grown at a CAGR of more than 20 per cent. The company also has a track record of innovation and use of technology to improve investor and partner experience.
9. Prudent Corporate Advisory Services Financials: Prudent Advisory has grown it’s AUM at a CAGR of 32.8% between Mar 2018 and Dec 2021. Moreover the company has grown its revenues and profits at a CAGR of 13.6 per cent and 46.8 per cent between FY2019 and FY2021 despite the adverse impact of Covid-19. For 9MFY2022 Prudent has reported revenues of `321.2 crore while net profits at `57.6 crore has already surpassed FY2021PAT of `45.3 crore.
10. Should You Subscribe: “We believe that Prudent has a very strong retail focused business model which provides them with a distinct competitive advantage and will be difficult to replicate. However valuations are on the higher side as compared to peers which will limit gains in the near term and hence we have a NEUTRAL recommendation on the IPO,” said AngelOne in a note on Prudent Corporate Advisory IPO.

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