Prudent acquires Karvy Stock Broking’s MF business

Our Bureau | | Updated on: Oct 29, 2021
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As of July 2021, Karvy Stock Broking had 11.98 lakh folios

Ahmedabad-based Prudent Corporate Advisory Services on Friday announced the acquisition of Karvy Stock Broking’s mutual fund folios/assets under management (AUM).

The acquisition has been done through a bidding process conducted by the joint committee of stock exchanges comprising the National Stock Exchange of India (NSE), the BSE and the Metropolitan Stock Exchange of India (MSEI), the company informed in a statement here.

As of July 2021, Karvy Stock Broking had 11.98 lakh folios having a total AUM (assets under management) of ₹9,261 crore. KSBL has 4.2 lakh live SIPs with an input value of ₹87 crore a month.

KSBL had a sub-distribution network of 5,000+ mutual fund distributors (MFDs).

Sanjay Shah, Chairman & Managing Director, Prudent Corporate Advisory Services said, “Acquiring Karvy’s MF folios shows our commitment towards growing our geographic reach by both expanding our distribution network and deepening our existing presence. It reinforces our belief in the retail wealth management sector in India.”

The acquisition of Karvy’s MF folios will help strengthen Prudent’s presence in the retail financial product distribution space.

MFD network growth

Prudent has been successful in growing the MFD network from 8,378 as on March 31, 2018 to 17,583 as on May 31, 2021, at a CAGR of 26.35 per cent.

Quoting Crisil data as on March 31, 2021, Prudent informed that it has about 17,583 or 15.84 per cent of the overall 1,11,000 AMFI Registration Number (ARN) holders registered with AMFI.

Notably, Prudent Corporate Advisory Services has filed a draft red herring prospectus (DRHP) with markets regulator SEBI for an initial public offering (IPO).

Published on October 29, 2021

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