Prudent Corporate Advisory Services, based in Ahmedabad, on Friday announced the acquisition of Karvy Stock Broking’s mutual fund / assets under management (AUM) portfolios.
The acquisition was made through a tender process conducted by the joint stock exchange committee comprising the National Stock Exchange of India (NSE), BSE and 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 entry value of ₹87 crore per month.
KSBL had a sub-distribution network of over 5,000 mutual fund distributors (MFDs).
Sanjay Shah, President and Managing Director of Prudent Corporate Advisory Services, said, “The acquisition of Karvy’s MF Folios demonstrates our commitment to increasing our geographic reach by expanding our distribution network and strengthening our existing presence. This reinforces our confidence in the retail wealth management industry in India. »
The acquisition of Karvy’s MF Folios will help strengthen Prudent’s presence in the retail financial product distribution space.
Growth of the MFD network
Prudent successfully grew the MFD network from 8,378 as of March 31, 2018 to 17,583 as of May 31, 2021, at a CAGR of 26.35%.
Citing data from Crisil as of March 31, 2021, Prudent said that approximately 17,583 or 15.84% of the 1,11,000 holders of AMFI registration numbers (ARNs) were registered with AMFI.
Notably, Prudent Corporate Advisory Services filed a draft red herring prospectus (DRHP) with market regulator SEBI for an initial public offering (IPO).