Prudent Corporate Advisory Services’ three-day preliminary public providing (IPO) opens on Tuesday (10 May) and can conclude on Thursday (12 May). The firm has set a value band of Rs 595-630 per share for the Rs 538.6 crore IPO. The retail wealth administration agency raised a little bit over Rs 159 crore from anchor traders forward of the preliminary share sale. The difficulty is totally a suggestion on the market (OFS) by present traders of the corporate. Prudent Corporate presents mutual fund merchandise, insurance coverage merchandise, inventory broking providers, mounted earnings merchandise, gold accumulation plan and so forth.
Prudent Corporate Advisory Services IPO particulars
Price band – Rs 595-630
IPO open date – May 10
IPO shut date – May 12
Allotment date – May 18
IPO itemizing date – May 23
No of shares pre difficulty – 41406680 fairness shares
Offer For Sale (OFS) – 8,549,340 fairness shares
Lot Size – 23 shares
Employee low cost – Rs 59 per share
QIBs (Including Anchor) portion – 50% of the provide
Non-Institutional portion– 15% of the provide
Retail – 35% of the provide
Prudent Corporate IPO gray market premium (GMP)
Prudent Corporate shares have been commanding a gray market premium (GMP) of Rs 30, in accordance with IPO Watch. The IPO shares are buying and selling at Rs 660 apiece within the gray market.
Should you subscribe to Prudent Corporate IPO?
Hem Securities: Subscribe for long-term
“Company is bringing the issue at price band of Rs 595-630 per share at p/e multiple of 45x on 9Months FY22 eps basis. Company being operative in an underpenetrated Indian asset management industry, that has grown at a CAGR of more than 20%, has a pan-India diversified distribution network with ability to expand into underpenetrated B-30 markets. Company has demonstrated a consistent track record of profitable growth due to a highly scalable, asset-light and cash generative business model. Hence we recommend “Subscribe” on difficulty for long run.”
Marwadi Financial Services: Avoid
Prudent Corporate Advisory Services gives wealth administration providers to 13,51,274 distinctive retail traders by way of 23,262 MFDs on business-to-business-to-consumer (B2B2C) platform and are unfold throughout branches in 110 places in 20 states in India, as on December 31, 2021. “Considering the FY21 / FY22 (Annualised) EPS of Rs.10.94/Rs.18.56 on a post issue basis, the company is going to list at a P/E of 57.59x/33.95x with a market cap of Rs 26,086 mn whereas its peers namely IIFL Wealth Management and ICICI Securities are trading at PE of 27.3x and 12.6x. We assign “Avoid” ranking to this IPO as the corporate is accessible at costly valuation as in comparison with its friends. We imagine valuations should not in favor of the traders.”
Angel One: Neutral
Prudent Advisory has grown its AUM at a CAGR of 32.8% between March 2018 and December 2021. Moreover, the corporate has grown its revenues and earnings at a CAGR of 13.6% and 46.8% between FY19 and FY21 regardless of the hostile affect of Covid-19. For 9MFY22, Prudent has reported revenues of Rs 321.2 crore whereas internet earnings at Rs 57.6 crore has already surpassed FY21PAT of Rs 45.3 crore.
“At the higher end of the price band Prudent will be trading at P/E multiple of 34.0x its annualized EPS for 9MFY2022 as compared to Anand Rathi which is trading at 20.5xFY2022 earnings. We believe that prudent has a very strong retail focused business model which provides them with a distinct competitive advantage and will be difficult to replicate. However, valuations are on the higher side as compared to peers which will limit gains in the near term and hence we have a NEUTRAL recommendation on the IPO.”
Anand Rathi Share and Stock Brokers: Subscribe for long run
“At the upper end of the IPO price band, Prudent Corporate Advisory Services Ltd. is offered at P/E of 33.9x its FY22 annualised earnings, with a market capitalization of Rs 26,086 million. The company has a scalable and asset-light model in a high growth underpenetrated Indian asset management industry with diversified distribution network. The company reported RoNW of 28.73% in FY21. However, the IPO is richly priced and the company will have to continue growing its business at a high growth rate, in order to justify the valuations – hence we give the IPO a “Subscribe (Long Term)” ranking.”
Choice Broking: Subscribe with Caution
According to Choice Broking, since 85% of the enterprise comes from MF distribution, “the business is highly cyclical to equity market behaviour.” The aggressive depth in monetary product distribution has grow to be extra intense with the entry of fintech gamers. “The company might face challenges in maintaining its margins at ~25% going forward. The demanding valuation at Rs 2,608 crore is expensive, leaving no margin of safety for investors,” it stated. Considering these parameters, it assigned a ‘subscribe with caution’ ranking to the problem.
Note that upon profitable itemizing, Prudent Corporate Advisory will be a part of listed friends comparable to IIFL Wealth Management, ICICI Securities, CDSL, Computer Age Management Services, HDFC AMC, Nippon Life Indian Asset administration, and UTI Asset Management. ICICI Securities, Axis Capital, and Equirius Capital are the ebook operating lead managers to the problem.
(The suggestions on this story are by the respective analysis analysts and brokerage companies. Financial Express Online doesn’t bear any accountability for his or her funding recommendation. Capital markets investments are topic to guidelines and rules. Please seek the advice of your funding advisor earlier than investing.)
Source: www.financialexpress.com”