Prudent Corporate Advisory Services’ three-day initial public offering (IPO) is scheduled to open today and end on Thursday, May 12, 2022. Retail wealth management firm set price band 595-630 per share for its share sale. The company said on Monday that it has raised slightly 159 crore from anchor investors prior to its issue.
The initial share-sale of 85,49,340 equity shares comprises an offer for sale (OFS) of 82,81,340 equity shares by Wagner Limited and 2,68,000 equity shares by Shirish Patel. At the upper end of the price band, the firm will increase approx. 538.6 crore through IPO,
As per market observers, Prudent Corporate Share is available at Premium (GMP) Today 30. The shares of the company are expected to be listed on May 23, 2022 in the gray market.
“We believe that Vivek has a very strong retail-focused business model that gives them a distinct competitive advantage and will be difficult to replicate. However, valuations are high compared to competitors, which will limit gains in the near term. And so we have a neutral recommendation on the IPO,” Angel One analysts said in a note.
Prudential Corporate Advisory Services is one of the leading independent retail wealth management services group (excluding banks) in India and one of the top Mutual Fund (MF) distributors in terms of average assets under management and commission received.
As of December 31, 2021, the company’s assets under management from the Mutual Fund Distribution Business (AUM) were 48,411.5 crores with 92% of their total AUM being equity-oriented.
“We recommend subscribing on the following parameters that financial penetration is expected to increase with increase in financial literacy and is expected to grow at a healthy pace due to strong demand- and supply-side drivers. As the company is entering with higher valuations, may be subject to correction in near future,” Jainum Broking said.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.