Prudent Corporate shares list at premium over IPO issue price
Premium- Prudent Corporate Advisory IPO was subscribed about 1.22 times on the last day of its three-day issue
Shares of Prudent Corporate Advisory Services made their stock market debut on Friday with the scrip listing at ₹650 apiece on the NSE, a premium of about 3% as compared to its IPO issue price of ₹630 per share. On the BSE, Prudent Corporate shares started trading at ₹660.
“The company’s tepid listing can be attributed to the rich pricing of the issue and the competitive and regulated nature of the industry. The company operates in an underpenetrated Indian asset management industry and has a consistent track record of profitable growth due to a highly scalable, asset-light, and cash generative business model. We suggest long-term investors accumulate this stock gradually on dips. Those who applied for listing gains can maintain a stop loss of ₹600," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Retail wealth management firm Prudent Corporate Advisory Services had set a price band of ₹595-630 per share for its three-day initial public offering (IPO) that had opened on May 10, 2022 and concluded on May 12. Prudent Corporate Advisory Services raised a little over ₹159 crore from anchor investors ahead of its share sale.
The retail individual investors (RIIs) portion got subscribed 1.29 times, while qualified institutional buyers (QIBs) received 1.26 times subscription and non-institutional investors (NIIs) 99%.
The initial share-sale of 85,49,340 equity shares comprised an offer for sale (OFS) of 82,81,340 equity shares by Wagner Ltd and up to 2,68,000 equity shares by Shirish Patel.
Prudent Corporate Advisory Services is one of the leading independent retail wealth management services group (excluding banks) in India and is amongst the top mutual fund (MF) distributors in terms of average assets under management and commission received.
It offers a technology enabled, comprehensive investment and financial services platform with end-to-end solutions critical for financial products distribution and has presence across both online and offline channels.
MINT PREMIUM See All
As of December 31, 2021, the company's assets under management (AUM) from the mutual fund distribution business stood at ₹48,411.5 crore with 92% of their total AUM being equity oriented.