Prabhudas Lilladher Advisory plans fund-raise through preferential allotment, IPO in two years

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Prabhudas Lilladher Advisory Services is seeking to raise funds through a preferential placement of equity shares to expand its margin funding book and wealth management operations. In a note for private circulation meant for select clients, the company said the issue will be priced at Rs 253 per share and the minimum investment per application will be Rs 1 crore. The exact amount the company is planning to raise could not be ascertained. However, the note explicitly stated that the company will go for an IPO within the next two years to provide an exit for investors.

Funds raised through the preferential allotment are to be utilized for building the Sebi Margin trade funding book, expanding the asset and wealth management businesses, contributing to the promoter’s share in AIF, and meeting AMC guidelines, the note said. A mail sent to the company did not elicit any response. A source said, “The company is pitching its shares to its own sub-brokers mostly."

Prabhudas Lilladher Advisory Services has a presence in wealth management, including broking, distribution, and lending. It is also active in portfolio management services (PMS), institutional equities, and investment banking. It has over 160,000 clients through over 1200 partners. It has over 4000 high-net-worth individual (HNI) clients and over 100 institutional clients, managing over Rs 26,000 crore.

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