The IPO is entirely an offer for sale (OFS), wherein existing shareholders will be offloading 85,49,340 equity shares. Wagner Ltd, an entity of TA Associates, will offload 82,81,340 equity shares and Shirish Patel, Whole Time Director and Chief Executive Officer of Prudent, will sell up to 2,68,000 equity shares.
At the upper range of the price band, the company aims to raise Rs 538.6 crore through its initial stake sale.
The investors can bid for a minimum of 23 shares and in multiples thereafter. The issue will close for subscription on Thursday, May 12.
The company has allocated shares worth Rs 6.5 crore to its eligible employees, who will get a discount of Rs 59 per equity share during the bidding process.
Prudent is one of the leading independent retail wealth management services groups (excluding banks) in India and among the top mutual fund distributors in terms of average assets under management and commissions received.
Apart from mutual funds, it also distributes financial products like insurance, portfolio management schemes, alternative investment funds, bonds, unlisted equities, stockbroking solutions, loans against securities, and NPS, among others.
The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get 15 per cent allocation. The remaining 35 per cent of shares are allocated to retail bidders.
As of December 31, 2021, the company’s assets under management (AUM) from the mutual fund distribution business stood at Rs 48,411 crore, with 92.14 per cent of its total AUM being equity-oriented.
For the year ended March 2021, the company reported a net profit of Rs 45.3 crore, a growth 63 per cent compared to Rs 27.85 crore in the previous year. The revenue jumped 25 per cent to Rs 294.9 crore from Rs 236.2 crore.
For the nine months ended December 31, 2021, Prudent Corporate reported a net profit of Rs 57.62 crore with a revenue of Rs 327.99 crore.
ICICI Securities, Axis Capital and Equirus Capital are the book running lead managers to the issue, whereas Link Intime has been appointed as the registrar to the issue.