Prudent Corporate Advisory Services IPO Details

Prudent Corporate Advisory Services Limited is a financial sector company. The company is engaged in an independent retail wealth management segment. The company is amongst the top mutual fund distributors. It holds one of the largest Average AUM. The company offers a technology-enabled solution. Checkout Prudent Corporate IPO details.

It also offers comprehensive investment services along with the financial services platform. The company also provides end-to-end critical solutions in the financial sector. Prudent Corporate Services has both an online and offline presence. The company was established in 2003.

The service portfolio of the company includes Life Insurance and General Insurance solutions. It also provides stockbroking services. The company has started a new service of SIP with Insurance. It also offers a Gold Accumulation Plan as well as Asset Allocation services. 

Prudent Corporate Advisory Services Limited provides digital wealth management (DWM) solutions on the digital front. The company is associated with numerous platforms. Some of them are FundzBazar, Policyworld, PrudentConnect, CreditBasket and WiseBasket. The company has a customer base of 13,51,274 retail investors. The customer base has been set up via 23,262 channel partners.

It’s major business operation is business-to-business-to-consumer, also known as the B2B2C network. It has 110 branches in 20 states of the country. The company is also connected with 42 AMCs as a distributor. Its latest result has registered 35.05 lakhs live folios and 15.25 lakhs live SIP.

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all the company’s loans, which be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  

BASIS OF THE PRUDENT CORPORATE IPO OFFER:

The basis of the IPO Offer Price is as follows:

  • Prudent Corporate Advisory Services Limited works in an underserved asset management market. It is the fastest-growing company in the segment. It’s growth with a CAGR of nearly 20%.
  • The company is among the biggest and fastest-growing firms establishing a network. It has been used for the distribution of their financial services.
  • The company has a granular retail AUM. It also holds skewed high-yield equity with an AUM mix.
  • The company has an increased involvement with Mutual Funds. It also holds a long-term association with them.
  • An established financial and operational track record. It uses innovation and technology in addition. This has enabled the company to improve its business operations as well as provide better customer service.
  • Prudent Corporate Advisory Services Limited has a PAN India distribution network. It has developed a capacity for an underserved B-30 segment of the country.
  • The company operates on a scalable asset-light business model. It has made it possible to effectively execute its Expansion Plans.

PRUDENT CORPORATE IPO DETAILS:

Prudent Corporate Advisory Services Limited has its headquartered in Ahmedabad. The company is ready to float its IPO in the market. The company recently got approval from SEBI after filling their DRHP. The IPO of the company is of 8,549,340 equity shares of the company. It is a purely OFS-based IPO offer. Post allotment, the company’s shares will be listed on BSE and NSE. It has allowed the company to build a stronger and more lasting relationship with mutual funds.

The IPO issue offer constitutes 20.65% of the post issue fully paid-up equity capital base of the company. The company also started an Rs. 59 per equity share discount for its employees. Post IPO offer, the fully paid-up equity capital of the company will remain the same. It will be at Rs. 20.70 crores. On the upper band of IPO, the company’s market share will be Rs. 2608.62 crores

IPO Opening DateMay 10, 2022
IPO Closing DateMay 12, 2022
Issue TypeBook Building Issue Type IPO
Face ValueRs. 5 per Equity Share
IPO PriceRs. 595 – Rs. 630
Market Lot1 lot of 23 equity shares
Minimum Order QuantityOne lot corresponding to 23 equity shares of the company
Minimum Order PriceRs.14,490
Maximum Order Quantity13 lots corresponding to 299 equity shares of the company
Maximum Order PriceRs.188,370
Listing AtBSE, NSE
Issue Size8,549,340 equity shares of the company. The issue is Rs. 538.61 crores.
Fresh IssueRs. 0
Offer for Sale8,549,340 equity shares of the company. The issue is Rs. 538.61 crores.
Employee DiscountRs. 59 per equity share of the company
Basis of Allotment Type% Of the Offer been allotted by IPO
Qualified Institutional Buyer50
Non-Institutional Investor15
Retail35
Basis of Allotment DateMay 18, 2022
Initiation of RefundsMay 19, 2022
The Credit of Shares to Demat AccountMay 20, 2022
IPO Listing DateMay 23, 2022

INVEST IN IPO WITH PAYTM MONEY

FINANCIAL TRENDS OF PRUDENT CORPORATE IPO:

ParticularsFor the year ending with the amount as in Rs. in millions
31-Dec-2131-Mar-2131-Mar-2031-Mar-19
Total Assets3,873.402,849.301,960.751,932.15
Total Revenue3,279.982,948.962,362.202,250.58
Profit After Tax576.28452.97278.53210.19
PARAMETERMARCH 21MARCH 20YoY %
   Earnings Per Share (Rs)438.08269.3762.63
   CEPS (Rs)12.918.6649.22
   DPS (Rs)3.002.5020.00
   Book NAV/Share (Rs)1524.591088.1640.11
   Tax Rate (%)25.1625.59-1.70
   Core EBITDA Margin (%)21.5719.878.55
   EBIT Margin (%)21.7017.0827.05
   Pre – Tax Margin (%)21.1215.9432.52
   PAT Margin (%)15.8111.8633.30
   Cash Profit Margin (%)18.6415.2422.30
   ROA (%)19.1014.4931.83
   ROE (%)33.5328.4817.75
   ROCE (%)44.3435.4924.94
   Asset Turnover (x)1.211.22-1.10
   Sales/Fixed Asset (x)7.826.2625.04
   Working Capital/Sales (x)2.332.54-8.13
   Fixed Capital/Sales (x)0.130.16-20.03
   Receivable days68.6690.98-24.54
   Inventory Days10.884.24156.54
   EV/Net Sales (x)-0.47-0.38-25.61
   EV/Core EBITDA (x)-1.93-1.84-4.76
   EV/EBIT (x)-2.18-2.201.14
   EV/CE (x)-0.48-0.46-5.09
   M Cap / Sales0.000.000.00
   Net Sales Growth (%)22.005.79280.16
   Core EBITDA Growth (%)46.2816.42181.81
   EBIT Growth (%)55.0126.39108.47
   PAT Growth (%)62.6332.5192.62
   EPS Growth (%)62.6332.8290.81
   Total Debt/Equity (x)0.020.07-75.84
   Current Ratio (x)2.102.40-12.34
   Quick Ratio (x)1.982.34-15.13
   Interest Cover (x)37.5514.97150.77

STRENGTHS AND OPPORTUNITIES OF PRUDENT CORPORATE IPO:

  • Prudent Corporate Advisory Services Limited operates in a business segment that is still to grow on a large scale. The company is an underpenetrated AUM management company. The overall growth of the sector will lead to the company’s growth.
  • In the last 3 years, the company has registered a very high growth rate. It registered a growth of 20% CAGR.
  • The company has a granular retail AUM. It also stated that the focus is on shifting towards the high-yield equity AUM.
  • Prudent Corporate Advisory Services Limited has a strong value proposition. It has helped the company to have a better and a long-standing relationship with the mutual funds subsequently.
  •  The company uses innovative methodology along with the technology for their business operation.
  • It also has a Pan-India distribution network. The company has a higher focus on expansion into underpenetrated B-30 markets.
  • The company has a strong offline as well as an online presence. The fundamentals and operation matrix of the company are solid.
  • Prudent Corporate Advisory Service Limited is the largest organization engaged in standalone retail wealth management services. It has been considered when we exclude banks and brokers.

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WEAKNESS AND THREATS OF PRUDENT CORPORATE IPO:

  • The company operates in a highly regulated environment. It needs to follow all the laws, regulations and government policies. Any non – compliance or default can lead to the cancellation of their license.
  • The company’s business is highly dependent on its ability to add and retain Mutual Funds. 
  • The major threat to the company is its inability to grow at its past performance. The past quarter of the company was over excellent in terms of the AUM.
  • The threat of changes in their mutual fund’s total expense ratio is another. Prudent Corporate Advisory Services Limited may experience a decrease in income and margins during regulatory changes. It will lead to a reduction in their revenue along with significant pressure on their financial data. 
  • Prudent Corporate Advisory Services Limited also worries about sustainability in bad times. It raises concerns about their prospects and plans in this highly volatile market.
  • The company faces immense stiff competition. Earlier their business operation as a mutual fund and Insurance distributor was not very competitive. Therefore, after coming of the discount brokers such as Zerodha, Paytm Money, and Groww it has restricted their margins. The new players are also buying direct plans. 
  • On current valuations, the asking PE of 35 looks a bit expensive on the front of the IPO.
  • In Conclusion, the worry of inflation and other factors such as a hike in the interest rates can hurt the company’s listing. On the short-term conditions, the listing doesn’t look to be effective.

COMPARISON WITH PEERS:

Name of the CompanyFace Value as in Rs.EPS of the company as in Rs.PE ratioPAT of the company as in Rs. in croresMarket cap as in Rs. in crores
Prudent Corporate Advisory Services LimitedRs. 5Rs.1934Rs. 76Rs. 2520
IIFL Wealth Management LtdRs. 2Rs. 65.1326.6Rs. 578Rs. 15,560
ICICI Securities LtdRs. 5Rs. 42.8512.3Rs. 1,383Rs. 16,948
Central Depository Services (India) LimitedRs. 10Rs. 29.7842.8Rs. 311Rs. 13,292
Computer Age Management Services LimitedRs. 10Rs. 56.243.2Rs. 274Rs. 11,847
HDFC Asset Management Company LimitedRs. 5Rs. 65.3230.8Rs. 1,393Rs. 42,892
Nippon Life India Asset Management LtdRs. 5Rs. 11.9625.8Rs. 744Rs. 19,247
UTI Asset Management Company LtdRs. 10Rs. 42.0918.6Rs. 534Rs. 9,940

PROMOTERS OF Prudent Corporate LIMITED IPO:

The promoters of the company areas:

  • Sanjay Shah
Pre-Issue Share Holding56.78%
Post Issue Share Holding56.78%

CONTACT DETAILS:

Prudent Corporate Advisory Service Limited

Prudent House, 3 Devang Park Society,

Panjarapole Cross Road, Ambawadi,

Ahmedabad 380 015, Gujarat

Tel: +91 79 4020 9600

E-mail: cs@prudentcorporate.com

Website: www.prudentcorporate.com

REGISTRAR:

Link Intime India Private Limited

C 101, 247 Park

L.B.S. Marg, Vikhroli (West),

Mumbai 400 083, Maharashtra

Tel: +91 22 4918 6200

E-mail: prudent.ipo@linkintime.co.in

Website: www.linkintime.co.in

LEAD MANAGER(S) OF PRUDENT CORPORATE IPO:

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