Wealth manager and mutual fund distributor Prudent Corporate advisory services have acquired Karvy Stock Broking Ltd.’s mutual fund folios having total assets under management (AUM) of ₹9,261 crores.
A joint committee of the National Stock exchange of India Ltd., BSE Ltd., and the metropolitan stock exchange of India Ltd. conducted a bidding process through which the acquisition was made.
Karvy Stockbroking had more than 1.19 million folios as of July.
With a distribution network of more than 5,000 mutual fund distributors, the stockbroking had 4,20,000 live Systematic investment Plans with an input value of Rs.87 crore a month.TA Associates, US private equity firm acquired a minority stake in Prudent in July 2018.
According to their website, Prudent Corporate advisory services offers personal and corporate investment planning services through its distribution of mutual funds, bonds, broking, and insurance products.
Prudent filed a draft for an IPO of around Rs.500 crores(67.4 million USD) in August this year.TA Associated holds a 39.91% stake in prudent while Shirish Patel, CEO of Prudent owns 3.15%.