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Prudent Corporate Advisory Services surprises IPO investors with nearly 5% listing gains

Prudent Corporate Advisory Services surprises IPO investors with nearly 5% listing gains
Stock Market2 min read
  • Shares of Prudent Corporate Advisory Services list at ₹660 while the shares were allotted at ₹595 per share.
  • The IPO was subscribed just 1.22 times on the last day of the bidding.
  • The market capitalisation of the company stood at ₹2,732 crore.
The retail wealth management firm Prudent Corporate Advisory Services made a surprisingly positive listing on the National Stock Exchange (NSE) and BSE at a 4.76% premium on the issue price of ₹595 apiece.

While the issue was expected to open at a discounted price due to poor grey market premium and extremely volatile market conditions, shares listed at a 5% premium on exchanges today.

This comes a day after a huge market crash at home as well as in the US and Asian markets because of a massive sell off on fear of heightening inflation across the world.

A day before the listing, shares of the company were trading at ₹5 discount to the issue price in the grey market.

At 10:07 a.m., shares of the company gave up its gains and declined 1% to ₹624.

Post-listing, the market capitalisation of the company stood at ₹2,732 crore, according to BSE data.

The IPO was open between May 10 and May 12 ⁠and was oversubscribed just 1.22 times by investors. The company intended to raise around ₹500 crore through this public issue.

Prudent Corporate offers mutual fund products, insurance products, stock broking services, fixed income products, gold accumulation plan and so on.

It provides wealth management services to 7.72 lakh unique retail investors through 17,583 mutual fund distributors (MFDs) as on May 31, 2021.

The wealth management company has been consistently growing its profit over the last three financial years.
Year

Revenue

Profit

FY21

₹294 crore

₹45.29 crore

FY20

₹236 crore

₹27.85 crore

FY19

₹225 crore

₹21 crore

(Source: Red Herring Prospectus)

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