Prudent Corporate is third straight IPO to list at discount, shares dip 10%


Shares of Prudent Corporate Advisory Services, a mutual fund distribu tor, closed 10 per cent below their issue price during their stock market debut on Friday.


Prudent Corporate is the third straight IPO to list at a discount after LIC and Rainbow Children’s Medicare. The weak listings are on the back of a selloff in the secondary market. The benchmark Nifty has crashed as much as 8 per cent this month before the latest rebound.

Shares of Prudent Corporate finished at Rs 566.3 compared to issue price of Rs 630 per share. The stock touched a high of Rs 650 and a low of Rs 541 on the NSE, where Rs 190 crore worth of shares changed hands. The company’s IPO had just about managed to scrape through with just 1.2 times subscription. The IPO was entirely an offer for sale.

Wagner, an associate firm of US-based private equity TA Associates, sold shares worth Rs 527 crore in the IPO. Ahmedabad-based Prudent Corporate is the country’s leading national distributor of mutual fund products among the non-banking and non-broking players. At the last close, the company had a market cap of around Rs 2,350 crore. Its stock currently trades at 30 times its annualized earnings for the year FY22.


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