Prudent Corporate Advisory IPO: This IPO open for investors, investment opportunity till May 12

Investment opportunity is till 12th May.

Today Prudent Corporate Advisory Services IPO is open for subscription and investors can invest in it till May 12. In the gray market, this share is available at a premium of Rs.30. The price band of the IPO is Rs 595-630.

today Prudent Corporate Advisory Services ,Prudent Corporate Advisory Services)’s IPO is open to investors. By May 12 this IPO (Prudent Corporate Advisory Services IPO) can be invested in. The price range for this IPO has been kept between Rs 595-630. This is a wealth management company that works to sell the product of another company. Before the IPO, this company has collected a fund of 159 crores from anchor investors. This IPO is worth Rs 538.6 crores. 85 lakh 49 thousand 340 shares will be issued through this IPO. It is believed that this stock will be listed in the stock market on 23 May. The discussion about this IPO is hot in the gray market.

According to market experts, this stock is getting at a premium of Rs 30 in the gray market. In a report published in Mint, Angel One analyst said that the company’s business model is based on the retail segment. Although the valuation of the company has been told more. Due to overvaluation, experts have estimated the stock to remain neutral.

Independent Retail Wealth Management Company

Prudent Corporate Advisory Services is India’s Leading and Independent Retail Wealth Management Company. It is also India’s top mutual fund distributor. The company earns well from commission and it is a successful business model. As on December 31, 2021, the company’s asset under management is 48411 crores. Equity-based mutual funds account for 92 percent of this.

The company earns from commission

The business of this company is mainly related to Mutual Fund Distribution. Apart from this, it also distributes other types of financial products. This includes products such as insurance, portfolio management schemes, alternative investment funds, corporate fixed deposits, bonds, unlisted equities, stock broking solutions, loans against securities and NPS. This company works as a distributor for third parties and earns commission from them. It does not have its own product, but it sells the product of others on its platform.

Pay attention to these aspects

If we look at some important aspects of this IPO, a total of 8.55 million shares will be issued under the offer for sale. Wagner Group holds 40 percent and Shirish Patel holds 3.15 percent in the company. Wagner is selling his 50 per cent stake, while Patel is selling 2.68 lakh shares. Wagner is selling a total of 8.28 lakh shares.

How was the company’s performance?

The company’s total revenue for the financial year 2020-21 stood at 277.56 crores. The company’s total revenue in the financial year 2019-20 was 229.31 crores. In the last financial year, the company’s net profit stood at 45.30 crores, which was 27.85 crores in the previous financial year. As on December 31, 2021, the total debt on the company is Rs 33 crore.

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Company’s rating is weak

Talking about the outlook, Moody’s has downgraded its rating. He has downgraded the company’s rating from Baa2 to Baa3. Apart from this, the outlook has been kept negative. In June 2020, Fitch has also weakened the outlook of this company. It has retained the company’s rating at BBB, but downgraded the outlook from stable to negative. If there is a fall in India’s sovereign rating, then the pressure on the company will increase.