Prudent Corporate IPO

Prudent Corporate Advisory Service Limited is India’s largest standalone retail wealth management services organization (excluding banks and brokers) and one of the leading mutual fund marketers in respect of AAUM and commission collected. Prudent Corporate IPO will hit the market in 10 May 2022.

About Prudent Corporate

Prudent Corporate Advisory Service Limited provides a technology-enabled, complete investment and financial services platform that includes end-to-end solutions for financial product distribution and visibility throughout both digital and offline channels.

With a CAGR of 34.4 percent and 32.5 percent, correspondingly, for the five years ending Fiscal 2021, they are the largest rising national distributor (among the top 10 mutual fund distributors) in regards of fee and AAUM.

In the last 20 years, they think they have established ourselves as an essential link between asset management firms (“AMCs”) and mutual fund distributors or independent financial advisers (“MFDs”) (and, by extension, individual investors who use the services of such MFDs).

Offices and Clients

As of May 31, 2021, they had offered wealth management services to 772,899 unique retail investors through 17,583 MFDs on our business-to-business-to-consumer (“B2B2C”) platform, and we had branches in 105 locations throughout 20 states in India.

45 of their branches are in markets outside of the major 30 cities (B-30) and 60 are in markets inside the top 30 cities (T-30). Furthermore, as of May 31, 2021, B-30 markets account for 27.62 percent of their registered MFDs and 25.12 percent of retail investors.

They make it easier for AMCs to reach smaller cities, notably in the B-30 markets, because to their extensive network of MFDs. They are affiliated as distributors with 41 AMCs as of May 31, 2021.

Business Approach

Due to developments including the growing presence of first-time investors, the reputation of mutual funds as an investment product outside of metropolitan areas.

A huge segment of investors’ lack of awareness of nuances throughout financial products, and the require for advice from a trusted intermediary in the wake of the financial crisis, standard plans will remain to account for the most of of retail MF AUM in the sector.

Furthermore, they believe that recent TER decreases have made obtaining new business from retail investors more difficult, and that AMCs will need to concentrate on creating alternate sourcing strategies and strengthening distributor management.

Prudent Corporate IPO

Prudent Corporate Advisory Services Limited, headquartered in Ahmedabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 8,549,340 equity shares on 12 August 2021.

The Offer doesn’t includes any fresh equity shares and There is an offer for sell(OFS) of 8,549,340 equity shares by the promoters mentioned in the DRHP.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		284.93	196.08	193.22
Total Revenue		294.90	236.22	225.06
Profit After Tax		45.30	27.85	21.02

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	10.96	10.94	3
Financial Year 2020	6.74	6.73	2
Financial Year 2019	5.08	5.08	1
Weighted Average	8.57	8.56

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the basic criteria and key strengths that contribute into determining the Offer Price:

1. They work in an underserved asset management market in India, which has expanded at a CAGR of more than 20%.
2. They are among the biggest and fastest-growing networks for the distribution of financial goods.
3. They have a granular retail AUM with a skewed high-yield equities AUM mix.
4. Increased involvement and a long-term connection with MFDs have resulted from our value offer.
5. They have a track record of using technology and innovation to improve the investor and partner experience.
6. They have a varied distribution network that spans India, with the capacity to develop into underserved B-30 areas.
7. They have a proven track record of successful expansion thanks to a highly scalable and asset-light business model.

Prudent Corporate IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	IIFL Wealth Management Limited	39.00
2	5	ICICI Securities Limited	21.40
3	10	Central Depository Services(India) Limited	69.70
4	10	Computer Age Management Service Limited	78.30
5	5	HDFC Asset Management Company Limited	47.00
6	10	Nippon Life India Asset Company Limited	36.50
7	10	UTI Asset Management Company Limited	26.00

Prudent Corporate IPO Details

IPO Opening Date	10 May 2022
IPO Closing Date	12 May 2022
Issue Type	Book Building
Face Value	5 per  share
IPO Price	595 to 630 per equity share
Market Lot	23
Min Order Quantity	14490
Listing At	BSE, NSE
Issue Size	8,549,340 EQUITY SHARES
Fresh Issue	0
Offer for Sale	8,549,340 EQUITY SHARES

Prudent Corporate IPO Date

Prudent Corporate IPO opening date is 10 May 2022, and the closing date is 12 May 2022. The Prudent Corporate issue may list in 20 May 2022.

IPO Opening Date	10 May 2022
IPO Closing Date	12 May 2022
Basis of Allotment Date	18 May 2022
Initiation of Refunds	18 May 2022
Credit of Shares to Demat Account	19 May 2022
IPO Listing Date	20 May 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

Prudent Corporate IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Prudent Corporate IPO.

Prudent Corporate IPO GMP

Prudent Corporate IPO Grey Market Premium is -4.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
19 May 2022	-4
18 May 2022	-1
17 May 2022	0
16 May 2022	2
15 May 2022	4
14 May 2022	10
13 May 2022	12
12 May 2022	15
11 May 2022	19
10 May 2022	28	0	0
09 May 2022	32	0	0
08 May 2022	31	0	0
07 May 2022	34	0	0
06 May 2022	32	0	0
05 May 2022	29	0	0
04 May 2022	25	0	0

Prudent Corporate IPO Review

Prudent Corporate IPO review: If you are looking for answer for Prudent Corporate IPO is good or bad then you can apply in this IPO with with long term view.

Prudent Corporate IPO Risk

• They rely on their ability to attract and maintain registered MFDs on their platforms, and failure to do so might have a negative impact on their company.
• Their failure to grow at their current rates might have a negative impact on their business.
• In their area of business, competition from current and new market competitors may have an impact on their market share.
• The financial services industry has operational risks that, if realised, might have a substantial negative impact on their firm.
• The impact of the COVID-19 pandemic’s recent increase on their future business will be determined by future events.
• Information technology is critical to their company operations.

Other Threats

• They may be exposed to substantial unforeseen losses if their risk management strategies and processes are inadequate.
• Direct mutual fund investments by their current and future customers will have a negative impact on their revenue.
• There is pending lawsuit against their Company and its subsidiaries, which, if found in their favour, might have a negative impact on their company.
• They have engaged in related party transactions in the past and may do so again in the future.
• Clients’ sensitive data that they keep may be exposed to security breaches, which might hurt their reputation and subject them to litigation.
• In order to continue to develop their business, they may require additional stock or debt in the future.

Business Model

Their technological platform, they think, has increased their acceptance among MFDs in the sector. There were 111,000 AMFI Registration Number (“ARN”) customers registered with AMFI as of March 31, 2021, with 17,583 ARNs empanelled with them, comprising 15.84 percent of the industry.

They added 12,507 MFDs to their platform between 2016 and 2021, which they believe demonstrates their capacity to offer a consistent and appealing value proposition for MFDs.

As a result, the number of retail investors they service has increased from 549,881 on April 1, 2018 to 772,899 on May 31, 2021.

Other Business

Our fully owned subsidiary, Gennext, distributes life and general insurance products in India. They sell insurance using a combination of digital and offline channels.

They delivered 86,988 policies in Fiscal 2021, with an aggregate premium of rs. 1,568.78 million and total brokerage of rs. 263.65 million, spanning life and non-life insurance sectors.

At a CAGR of 27.85 percent, the total number of policies delivered via them grew from 53,221 in Fiscal 2019 to 86,988 in Fiscal 2021.

Further renewals accounted for 65.05 percent of the total number of policies they sold in Fiscal 2021, resulting in a premium of 802.41 million.  They sell insurance using a combination of digital and offline channels.

Leadership Team

They have a specialist and skilled leadership team led by Mr. Sanjay Shah, Chairman and Managing Director and Promoter, Mr. Shirish Patel (CEO and Director) , , Mr. Chirag Shah (Director), and  Mr. Chirag Kothari (Chief Financial Officer), who are backed up by a productive and competent workforce of 973 employees (as of May 31, 2021).

Their senior management team has expertise and abilities in company operations, finance, accounting, and the financial services sector. They’ve shown that they can manage and build their businesses together.

Prudent Corporate IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Prudent Corporate IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
10 May 2022	1
11 May 2022	2
12 May 2022	3

Promoters

• Sanjay Shah

Promoters’ Holding

Pre Issue Share Holding	43.43%
Post Issue Share Holding