Prudent Advisory are one of the largest independent retail wealth management services groups (excluding banks and brokers) in India and are amongst the top mutual fund distributors in terms of average assets under management (“AAUM”) and commission received.
Prudent Advisory 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. Also, Prudent Advisory are 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.
Prudent Advisory believe they have become an important interface between asset management companies (“AMCs”) and mutual fund distributors or independent financial advisors (“MFDs”), over the last two decades. Prudent Advisory are an independent platform with no single AMC contributing more than 15% of their AUM as of May 31, 2021.
Incorporated in 2003, they provided wealth management services to 772,899 unique retail investors through 17,583 MFDs on their business-to-business-to-consumer (“B2B2C”) platform and are spread across branches in 105 locations in 20 states in India, as of May 31, 2021.
Prudent Advisory believe that their technology platform has given them wider acceptability amongst MFDs in the industry. As of March 31, 2021, there were 111,000 AMFI Registration Number (“ARN”) holders registered with AMFI, while the number of ARNs impaneled with them stood at 17,583, representing 15.84% of the industry.
As per CRISIL, 70,049 MFDs have joined the industry during the five-year period between 2016 and 2021.
Competitive Strengths
- Prudent Advisory operate in an underpenetrated Indian asset management industry, that has grown at a CAGR of more than 20%
- Prudent Advisory are one of the largest and fastest-growing financial products distribution platforms.
- Have a granular retail AUM with a mix skewed towards high-yield equity AUM
- Their value proposition has led to increased participation and a long-standing relationship with MFDs
- Prudent Advisory have a track record of innovation and use of technology to improve investor and partner experience
- Prudent Advisory have a pan-India diversified distribution network with the ability to expand into underpenetrated B-30 markets
- Have demonstrated a consistent track record of profitable growth due to a highly scalable, asset-light, and cash generative business model
- Prudent Advisory have an experienced management team and are backed by a global investor
Prudent Corporate IPO – Business Strategy
- They intend to continue to focus on increasing geographic reach and strengthening relationships with MFDs
- They intend to leverage their existing MFD network to distribute products and services
- Also, they intend to continue innovating their technology platforms to provide a superior experience to their MFDs and their clients
- They intend to add new offerings to their existing portfolio
Company Promoters
- Sanjay Shah
Company Financials
| Amount (in INR & Million) | |||
| 31-Mar-21 | 31-Mar-20 | Mar-19 | |
| Total Assets | 2,849.30 | 1,960.75 | 1,932.15 |
| *Total Revenue | 2,948.96 | 2,362.20 | 2,250.58 |
| Total Expense | 2,343.72 | 1,987.86 | 1,944.87 |
| Profit After Tax | 452.97 | 278.53 | 210.19 |
Object Of The Issue
- To carry out the Offer for Sale.
- To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Prudent Corporate IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | IIFL Wealth Management Limited | 39.00 |
| 2 | 5 | ICICI Securities Limited | 21.40 |
| 3 | 10 | Central Depository Services(India) Limited | 69.70 |
| 4 | 10 | Computer Age Management Service Limited | 78.30 |
| 5 | 5 | HDFC Asset Management Company Limited | 47.00 |
| 6 | 10 | Nippon Life India Asset Company Limited | 36.50 |
| 7 | 10 | UTI Asset Management Company Limited | 26.00 |
Prudent Corporate IPO Strengths
- Operates in an underpenetrated Indian asset management industry, that has grown at a CAGR of more than 20%
- One of the largest and fastest growing financial products distribution platforms
- Has a granular retail AUM with a mix skewed towards high-yield equity AUM
- Value proposition has led to increased participation and long-standing relationship with MFDs.
- Track record of innovation and use of technology to improve investor and partner experience
- Pan-India diversified distribution network with ability to expand into underpenetrated B-30 markets
Prudent Corporate IPO Risks
- Operates in a highly regulated environment, and existing and new laws, regulations and government policies affecting the sectors in which it operates could adversely affect the business.
- Depends on the ability to attract and retain registered MFDs on their platforms and any inability to retain them would impact the business
- Inability to grow at the historical rates, measured in terms of AUM.
- Recommendations, suggestions and advice provided by MFDs using the platform to their clients may be subject to errors or fraudulent behaviour and are beyond the company’s control.
- Any changes in the total expense ratio due to regulatory changes may reduce the distribution commission income as the revenue is dependent on certain AMCs and sustained ability to increase AUM as well as on the performance of the funds.
Prudent Corporate IPO – Details
| IPO Opening Date | 10 May 2022 |
| IPO Closing Date | 12 May 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 537.93 Crore |
| Face Value | ₹5 per equity share |
| IPO Price | ₹595-630 |
| Market Lot | 23 Shares (1 Lot) |
| Min Order | 23 Shares |
| Listing At | BSE, NSE |
| Register | LinkInTime India Private Limited |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| Employee Discount | Rs 59 Per Share |
Prudent Corporate IPO – Date Schedule
| IPO Open Date | 10 May 2022 |
| IPO Close Date | 12 May 2022 |
| Basis of Allotment Date | 18 May 2022 |
| Initiation of Refunds | 19 May 2022 |
| Credit of Shares to Demat Account | 19 May 2022 |
| IPO Listing Date | 20 May 2022 |
Prudent Corporate IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 23 | 14,490 |
| Maximum | 13 | 299 | 1,88,370 |
Promoter Holding
| Pre Issue Share Holding | 56.78% |
| Post Issue Share Holding |
Prudent Corporate IPO Prospectus
Company Contact Information
| Prudent Corporate Advisory Services 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: https://www.prudentcorporate.com/ |
Prudent Corporate IPO 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 |
Prudent Corporate IPO Lead Manager(s)
| 1. ICICI Securities Limited 2. Axis Capital Limited 3. Equirus Capital Private Limited |
Prudent Corporate IPO FAQs
| When Prudent Corporate IPO will open? The Prudent Corporate IPO dates are 10 May 2022 To 12 May 2022. |
| What is the lot size of Prudent Corporate IPO? Prudent Corporate IPO lot size is 23 Shares and total amount is ₹14,490. |
| How to apply for Prudent Corporate IPO? You can apply in Prudent Corporate IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is Prudent Corporate IPO listing date? The Prudent Corporate IPO listing date is announced. The date of Prudent Corporate IPO listing is [20 May 2022]. |
