The bid received bids for 73.30 lakh shares against 60.18 lakh shares on offer.
Prudent Corporate Advisory Services’ initial public offering (IPO) received bids for 73,30,928 shares against 60,18,689 shares on offer. The issue was subscribed 1.22 times.
The retail investor category was subscribed 1.29 times. The Qualified Institutional Buyers (QIB) category was subscribed 1.26 times. The employee category was subscribed 1.23 times. The non-institutional investor category was subscribed at 0.99%.
The issue opened for auction on Tuesday (May 10, 2022) and closed on Thursday (May 12, 2022). The IPO price range has been set at Rs 595-630 per share. The company will offer a rebate of Rs 59 per share to eligible employees. The offer includes a stock reservation worth up to Rs 6.50 crore for eligible employees.
The IPO consisted entirely of an offer to sell (OFS) of 85.49 lakh shares. It included up to 82,81,340 equity shares of Wagner Limited and up to 268,000 equity shares of Shirish Patel (“selling shareholders”).
Prior to the IPO, Wagner held 40% of the company’s capital, while Shirish Patel held 3.15%.
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 full-time Director and CEO of Prudent Corporate Advisory Services.
The company expects to receive the benefits of listing the shares, including improved visibility and brand image with existing and potential customers.
The shareholding of the promoters and the group of promoters will remain stable after the issuance at 56.78%.
Prior to the IPO, Prudent Corporate Advisory Services on Monday, May 9, 2022, finalized the allotment of 25,30,651 shares to anchor investors at an allotment price of Rs 630 per share, totaling Rs 159.43 ,10,130.
Prudent Corporate Advisory Services, incorporated in 2003, is an independent retail wealth management services group and is a leading mutual fund provider in terms of average assets under management (AAUM) and commissions earned. The company offers a comprehensive investment and financial services technology platform with end-to-end solutions essential to the distribution and presence of financial products across online and offline channels.
Assets under management of the mutual fund distribution (AUM) business stood at Rs 48,411.47 crore, with 92.14% of the AUM focused on equities, which has a CAGR of 32 .83% from Rs 16,667.75 crore at the end of March 2018. Equity-focused AUM increased at even a higher CAGR of 36.49% from Rs 13,865.79 crore to 44,605.91 Rs crore, accounted for 2.39% of total assets under management in the mutual fund industry. Among domestic distributors, market share on a commission basis increased from approximately 4% in fiscal year 2015 to approximately 12% in fiscal year 2021.
The company reported net profit of Rs 57.63 crore and sales of Rs 321.22 crore for the nine months ending December 2021.
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