Prudent Corporate Advisory Services Surprises IPO Investors

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Prudent Corporate Advisory Services Surprises IPO Investors
20 May 2022
6 min read

News Synopsis

Prudent Corporate Advisory Services, a retail wealth management firm, was listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) at a 4.76 percent premium to the issue price of 595 per share. Despite the fact that the issuance was expected to debut at a discount due to a low grey market premium and extremely volatile market conditions, shares traded today at a 5% premium. This comes a day after a dramatic market meltdown at home, as well as in the US and Asian markets, as a result of widespread anxiety of rising inflation.

In the grey market a day before the listing, the company's shares were selling at a 5% discount to the issue price. According to BSE data, the company's market capitalisation after listing was 2,732 crore. The IPO was offered from May 10 to May 12 and was only 1.22 times oversubscribed by investors. This public offering was planned to raise about 500 crores for the corporation.

Prudent Corporate provides mutual funds, insurance, stockbroking, fixed income, and gold accumulation plans, among other services. As of May 31, 2021, it offered wealth management services to 7.72 lakh individual retail investors through 17,583 mutual fund distributors (MFDs). Over the last three financial years, the wealth management firm has regularly increased its earnings.

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