Prudent Corporate shares make modest debut; list at nearly 5% premium; What should investors do with this counter?

Shares of Prudent Corporate Advisory Services made a decent debut on the exchanges on Friday. The counter was listed at Rs 660 per share on the BSE. It was higher by Rs 30 or 4.76% against upper end of the price band of issue price at Rs 630 per share. On the NSE, the shares were listed at 3.17% premium to Rs 650 per share.  

Earlier, Prudent Corporate Advisory Services IPO was subscribed 1.22 times on the final day of bidding.  

Initial public offering of Prudent Corporate Advisory Services had opened on May 10 and closed on May 12. The company, which had fixed a price band of Rs 595-630 per share, aimed to raise around Rs 538.61 crore at the upper end of the price band via IPO. 

Zee Business Managing Editor Anil Singhvi had recommended Long Term Investors to buy can if the shares list at a big discount.  

Earlier, Singhvi had said that one should not apply in this IPO with listing gain view. He suggested avoiding the issue if one is looking at Prudent Corporate Advisory Services IPO from listing gain point of view 

"Given the current market sentiments, one should buy the shares post listing. "Only high-risk taking investors should apply for the issue with long-term view," Singhvi had said. 

Meawnhile, Santosh Meena, Head of Research, Swastika Investmart Ltd, said the company’s tepid listing can be attributed to the rich pricing of the issue and the competitive and regulated nature of the industry.

The company operates in an underpenetrated Indian asset management industry and has a consistent track record of profitable growth due to a highly scalable, asset-light, and cash generative business model, he said.

"We suggest long-term investors accumulate this stock gradually on dips. Those who applied for listing gains can maintain a stop loss of Rs. 600," Meena reccomended. 

Prudent Corporate Advisory Services is one of the leading independent retail wealth management services groups (excluding banks) in India and is among the top mutual fund distributors in terms of average assets under management and commission received.  

It offers a technology-enabled, comprehensive investment and financial services platform with end-to-end solutions critical for financial products distribution and presence across online and offline channels.