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As on 20-May-2022  10:18

Prudent Corporate Advisory slides on debut
The scrip was listed at Rs 660, representing a premium of 4.76% to the initial public offer (IPO) price.

So far, the scrip has hit a high of Rs 660 and a low of Rs 605.20. Over 77,000 shares of the company have changed hands in the counter till now.

The IPO of Prudent Corporate Advisory Services was subscribed 1.22 times. The issue opened for bidding on 10 May 2022 and it closed on 12 May 2022.

The price band of the IPO was fixed at Rs 595-630 per share. The company offered a discount of Rs 59 per share to eligible employees. The offer included a reservation of shares worth upto Rs 6.50 crore for eligible employees.

The IPO consisted entirely of an offer of sale (OFS) of 85.49 lakh equity share. It included upto 82,81,340 equity shares by Wagner Limited and upto 268,000 equity shares by Shirish Patel (selling shareholders).

Before the IPO, Wagner held 40% stake in the company, while Shirish Patel 3.15% stake.

Wagner, a global investment firm, invested in Prudent Corporate Advisory Services in Fiscal 2019. Wagner is a member of TA Associates, a global investment fund.

Shirish Patel is the whole-time director and chief executive officer of Prudent Corporate Advisory Services.

The company expects to receive the benefits of listing of the equity shares, including enhancing visibility and brand image among existing and potential customers.

The promoters and promoter group shareholding will remain steady post issue at 56.78%.

Prudent Corporate Advisory Services incorporated in 2003 is an independent retail wealth management services group and is 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.

The assets under management from the mutual fund distribution business (AUM) stood at Rs 48,411.47 crore with 92.14% of AUM being equity oriented, which has at a CAGR of 32.83% from Rs 16,667.75 crore end March 2018. Equity oriented AUM has increased at even higher CAGR of 36.49% from Rs 13,865.79 crore to Rs 44,605.91 crore, represented 2.39% of total equity AUM of mutual fund industry. Among national distributors, market share on commission received basis has increased from around 4% in FY2015 to around 12% in FY2021.

The company reported a net profit of Rs 57.63 crore and sales of Rs 321.22 crore for the nine months ended as on December 2021.

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