US-based private equity investor TA Associates-backed wealth manager and mutual fund distributor Prudent Corporate Advisory Services has decided to open its initial public offering for subscription on May 10.
The issue will close on May 12, and the bidding for its anchor book will take place on May 9.
The initial public offer of 8.54 million equity shares is entirely an offer for sale by investor Wagner Ltd, an affiliate of US-based private equity investor TA Associates, and another selling shareholder Shirish Patel. Wagner will offload 8.28 million shares through OFS.
The company has reserved shares worth Rs 65 million for its employees.
Promoter Sanjay Shah holds a 43.36 percent stake in Prudent Corporate and Wagner has a 40 percent shareholding.
Incorporated in 2003, Prudent Corporate Advisory Services is an independent retail wealth management services group in India and is amongst the top mutual fund distributors in terms of average assets under management (AAUM) and commission received.
The mutual fund distributer registered a growth at a CAGR of 34.4 percent and 32.5 percent, in terms of commission and AAUM respectively, for the five year period ending FY21.
As on December 2021, its assets under management from the mutual fund distribution business stood at Rs 484.11 billion with 92.14 percent of its total AUM being equity oriented, which increased at a CAGR of 33 percent from Rs 166.67 billion as on March 2018.
For the financial year 2020-21, the company clocked 63 percent growth in profit at Rs 45.3 crore and the revenue grew by 22 percent to Rs 286.5 crore compared to the previous year. Profit for nine months ended December 2021 stood at Rs 57.63 crore on revenue of Rs 321.22 crore.
ICICI Securities, Axis Capital, and Equirus Capital are the book running lead managers to the offer, while Link Intime India is the registrar to the offer.