Prudent Corporate IPO analysis @ Chanakyanipothi.com , India`s Oldest & most Trusted Investment Blog.Operational since 8th December 1999, We are the Only Investment Platform in India, which has successfully completed 21 Years
Prudent Corporate IPO Listing : The scrip on 20 May 2022 listed at Rs. 650 and then immediately fell below offer price and showed intraday low of Rs. 541 & at the end of the first session, closed at Rs. 561.75
Prudent Corporate IPO Listing Estimate : The company has strong fundamentals and yet due to very weak external factors , the listing may get affected. We recommend the allottes, not to sell the shares at this juncture and retain the same for atleast 6 months to get proper valuation and price.
Prudent Corporate Grey Market News Today #
On 20 May 2022
Grey Market Premium Rs. NIL/ No trades
Prudent Corporate IPO Subscription Trend
on 12 May 2022 @ 5.00 am ( Last Day)
QIB 1687101 Sh : 1.26 T
NII : 1265326 Sh : 0.99 T
RII : 2952427 Sh : 1.29 T
Emp: 113835 Sh : 1.23 T
Tot : 6018689 Sh : 1.22 T
Prudent Corporate Guidance : The company is a cash cow. No new funds are required for expansion of business. The profits are expected to rise with consistent growth rate. Though Grey Market premium is not impressive ( due to external factors), the IPO is recommended with long term investment angle.
Click to Study Detailed analysis.
Prudent Corporate Anchor investment:
Retail wealth management firm Prudent Corporate Advisory Services has raised a little over Rs 159 crore from anchor investors ahead of its initial share sale.
The company has decided to allocate a total of 25,30,651 equity shares to anchor investors at Rs 630 apiece, aggregating the transaction size to Rs 159.43 crore, as per the circular uploaded on BSE.
Societe Generale, Kuber India Fund, DSP Mutual Fund (MF), HDFC MF, Axis MF, L&T MF, UTI MF, Canara Robeco MF, Motilal Oswal MF, Aditya Birla Sun Life MF, Kotak MF and HSBC MF are among the anchor investors.
Prudent Corporate Company Details
Prudent Corporate is one of the largest independent retail wealth management services group (excluding banks and brokers) in India and is amongst the top mutual fund distributors in terms of average assets under management and commission received . It 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 is the fastest growing national distributor (amongst the top 10 mutual fund distributors) in terms of commission and AAUM with a CAGR of 34.4% and 32.5% respectively for the five year period ending Fiscal 2021
It has become an important interface between asset management companies and mutual fund distributors or independent financial advisors and by extension, retail investors who avail services from such , over the last two decades. As on May 31, 2021, its assets under management from the mutual fund distribution business stood at Rs 333,15.95 Cr with 88.63% of its total AUM being equity oriented. Among national distributors its market share on commission received basis has increased from around 4% in Fiscal 2015 to around 12% in Fiscal 2021. Its equity AUM of Rs 271,07.68 Cr as on March 31, 2021, represented 1.97% of total equity AUM of mutual fund industry.
Incorporated in 2003, it has provided wealth management services to 772,899 unique retail investors through 17,583 MFDs on its business-to-business-to-consumer platform and are spread across branches in 105 locations in 20 states in India, as on May 31, 2021. Of its branches, 45 are locations in beyond the top 30 cities markets and 60 are locations in the top 30 cities markets.
Owing to its large network of MFDs, it facilitates AMCs access to smaller cities, especially in the B-30 markets. As of May 31, 2021, it is associated as distributors with 41 AMCs.
Prudent Corporate also distributes life and general insurance products in India through its wholly owned subsidiary, Gennext. In Fiscal 2021, it distributed 86,988 policies, across life and non-life insurance segments, with an aggregate premium of Rs 1,568.78 million, and total brokerage received amounting to Rs 263.65 million. The total number of policies distributed through it increased from 53,221 in Fiscal 2019 to 86,988 in Fiscal 2021 at a CAGR of 27.85%. It distributes insurance products through a mix of online and offline channels, with each contributing 49.61% and 50.39%, respectively to new policies issued in Fiscal 2021.
For more information, click www.prudentcorporate.com
The Promoter of Prudent Corporate
Prudent Corporate IPO Main Object
The object of the IPO is to carry out the Offer for Sale
Prudent Corporate IPO Details
IPO opens on 10 May 2021
IPO closes on 12 May,2021
Issue Type: Book Built Issue IPO
Issue : up to 8,549,340 Shares /Rs 538.61 Crore
* Offer for Sale Up to 8549,340 Sh/ Rs. 538.61 Cr
Face Value per share : Rs. 5
Prudent Corporate IPO Price Band Per Equity Share: Rs. 595-630
Employee Discount Rs. 59
Prudent Corporate IPO Retail Lot Size 23 Shares
Prudent Corporate Listing will at BSE,NSE
Shares offered to
QIB (50%) 4267184 Shares = Rs 268.83 Cr
NII (15%) 1280155 Shares = Rs 80.65 Crs
RII (35%) 2987029 Shares = Rs 188.18 Crs
Emp 14972 shares : 6.50 Cr
Lot size: 23 Shares = 129870 Forms
Min Retail Application : 23 Sh , Rs. 14490
Max Retail Application : 299 Sh, Rs 188370
Prudent Corporate IPO Tentative timeTable
Prudent Corporate IPO Allotment on 18 May 2021
Unblocking of ASBA 19 May 2021
Credit to Demat Accounts 20 May 2021
Prudent Corporate Listing on 20 May 2021
Prudent Corporate IPO Financials :
Earnings per Share 2019-20 Rs 6.74
Earnings per Share 2020-21,Rs 10.96
Earnings per Share 2021-22 9 M Rs 13.94
Return on Net Worth: 19-20 24.75 %
Return on Net Worth: 20-21: 28.73 %
Return on Net Worth: 20-21 9M: 26.83 %
Book Value of the Share as on 31.3.2021 Rs 38.13
Book Value of the Share as on 31.12.2021 : Rs. 51.95
Equity Shares prior to the IPO : 41,344,000 Shares
Upper Price Band/latest annualised EPS: 33.90
Upper Offer price/Book Value Ratio: 12.12
Upper Offer price/Book Value after IPO Ratio:
Prudent Corporate IPO Peer Comparison:
IIFL Wealth Management @ PE Multiple of 41.90
ICICI Securities @ PE Multiple of 18.00
CDSL @ PE Multiple of 74.70
Computer Age Management @ PE Multiple of 62.50
HDFC AMC @ PE Multiple of 32.90
Nippon Life India AMC @ PE Multiple of 30.00
UTI AMC @ PE Multiple of 24.40
Prudent Corporate IPO Lead Managers
ICICI Securities,Axis Capital ,Equirus Capital
Registrar to Prudent Corporate IPO
Linkintime India pvt ltd.
Registered Office of Prudent Corporate
Prudent House, 3 Devang Park Society, Panjarapole Cross Road, Ambawadi, Ahmedabad 380 015
Company Secretary & Compliance Officer : Dhavalkumar Ghetia
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