About the Company:
Prudent Corporate Advisory Services Ltd is an independent retail wealth management services group in India and are amongst the top mutual fund distributors in terms of average assets under management (“AAUM”) and commission received.
Company offer 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.
Company grew faster among national distributors (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
Company has become an important interface between asset management companies (“AMCs”) and mutual fund distributors or independent financial advisors (“MFDs”) (and by extension, retail investors who avail services from such MFDs), over the last two decades.
Company is an independent platform with no single AMC contributing more than 15% of our AUM as of December 31, 2021.
Company’s AUM has increased from Rs.16,667.7 crores as on March 31, 2018 to Rs.48,411.4 croresas on December 31, 2021, at a CAGR of 32.83%
Among national distributors company’s market share on commission received basis has increased from around 4% in Fiscal 2015 to around 12% in Fiscal 2021.
Company’s equity AUM of Rs.44,605.9 cr as on December 31, 2021, represented 2.39% of total equity AUM of mutual fund industry.
Company’s Presence:
Company provided wealth management services to 13,51,274 unique retail investors through 23,262 MFDs on our business-to-business-to-consumer (“B2B2C”) platform and are spread across branches in 110 locations in 20 states in India, as on December 31, 2021.
As of December 31, 2021, company is associated as distributors with 42 AMCs.
Company’s wholly owned subsidiary (Gennext)
Company also distribute life and general insurance products in India through wholly owned subsidiary, Gennext.
In the nine months ended December 31, 2021, company distributed 74037 policies, across life and non-life insurance segments, with an aggregate premium of Rs.161.2 crores, and total brokerage received amounting to Rs.23.2 crores.
The total number of policies distributed through us increased from 53,221 in Fiscal 2019 to 86,988 in Fiscal 2021 at a CAGR of 27.85%.
Company’s key metrics as on December 31, 2021 are detailed below:
Key financial metrics are as below:
Company’s Platforms:
With focus on providing technologically driven solutions, company offer digital wealth management (“DWM”) solutions through our platforms, namely, FundzBazar, PrudentConnect, Policyworld, WiseBasket, Prubazar and CreditBasket.
Below given are the milestone for launch of various digital platforms by the company:
Company is backed by a global investor:
Wagner, a global investment firm had invested in the Company in Fiscal 2019 and has been part of the journey since. Company has benefited from the strategic inputs and support of marquee financial investor, Wagner, a member of TA Associates, a global investment fund.
Management Team:
- Mr. Sanjay Shah (Designation: Chairman and Managing Director)
- Mr. Shirish Patel (Designation: Whole-time Director and Chief Executive Officer)
Objectives of the Issue:
Offer for Sale: (Rs.538.60 cr)
- Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 31st Dec 21 |
|---|---|---|---|---|
| Revenue | 225.0 | 236.2 | 294.8 | 327.9 |
| Net Profit | 21.0 | 27.8 | 45.2 | 57.6 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Prudent Corporate Advisory Services Ltd |
5 | 10.94 | 57.58 | 28.73% | 38.13 |
| IIFL Wealth Management Ltd |
2 | 41.76 | 41.9 | 13.06% | 321.77 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 10th May 2022 |
| Issue Closes on:. | 12th May 2022 |
| Issue Price | Rs.595 – 630 |
| Face Value | Rs.5 |
| Retail Category Allocation | 35% |
| Minimum Lot | 23 Shares |
| Minimum Investment | Rs.14,490 |
| Issue Constitutes | 20.64% |
| Issue Size | Rs.538.60 cr ($72 million) |
| Market Cap | Rs.2608 cr ($343 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 85,49,340 (Rs. 538 cr) |
| Equity Shares Prior to the Issue | 4,14,06,680 |
| Equity Shares after the issue | 4,14,06,680 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 18th May 2022 |
| Initiation of Refunds | on or Before 19th May 2022 |
| Credit of Equity Shares: | on or Before 20th May 2022 |
| Listing Date: | on or Before 23rd May 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 10.94 | 57.58 | 28.73 | 38.13 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Prudent Corporate Advisory Services Ltd Prudent House 3 Devang Park Society Panjarapole Cross Road Ambawadi, Ahmedabad 380015 Gujarat. Tel: +91 79 4020 9600 Email: cs@prudentcorporate.com Website: www.prudentcorporate.com |
| IPO Registrar Info: |
|---|
| 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 |
