Prudent Corp.

The Company operates in an underpenetrated Indian asset management industry, that has grown at a CAGR of more than 20%.

The Company is a growing financial products distribution platform.

It has a granular retail AUM with a mix skewed towards high-yield equity AUM.

Its value proposition has led to increased participation and long-standing relationship with MFDs.

It has a pan-India diversified distribution network with ability to expand into underpenetrated B-30 markets.

It has demonstrated a consistent track record of profitable growth due to a highly scalable, asset-light and cash generative business model.

It has an experienced management team and is backed by a global investor.

The company operate in a highly regulated environment, which is subject to change, and existing and new laws, regulations and government policies affecting the sectors in which its operate could adversely affect its business, financial condition and results of operations.

The company depend on its ability to attract and retain registered MFDs on its platforms and any inability to retain them may adversely affect its business and results of operations.

Its inability to grow at its historical rates could adversely affect its business, results of operations and financial condition.

Recommendations, suggestions and advice provided by MFDs using its platform to their clients may be subject to errors or fraudulent behaviour and are beyond its control and any resultant adverse impact to their clients could have an adverse impact on its reputation, business and results of operations.

Competition from existing and new market participants in its line of business may affect its market share, or results of operations.

If the company do not continue to innovate and further develop its platform or the company platform developments do not perform, or its not able to keep pace with technological developments, its may not remain competitive and its business and results of operations could suffer.

Its revenues from distribution of mutual funds are dependent on certain AMCs and its sustained ability to increase its AUM as well as on the performance of the funds that its distribute. Any changes in the total expense ratio due to regulatory changes may reduce its distribution commission income which may have a adverse effect on its business, financial condition or results of operation.

There are operational risks associated with the financial services industry which, if realised, may have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.

The deterioration of general economic conditions due to COVID- 19 and the extent to which the recent escalation of the COVID-19 pandemic will impact its future business and results of operations will depend on future developments, which are difficult to predict.

The company is highly dependent on its management team and key management personnel. Any loss of such team members or the inability to attract or retain management personnel may have material adverse effect on its business performance.

Non-compliance with regulatory guidelines and directions/ observations during inspection by regulatory organisations may have a material adverse effect on its business, financial condition or results of operation.

If its techniques and processes for managing risks are ineffective, its may be exposed to material unanticipated losses.

Direct investments in mutual funds by its existing as well as potential clients will have an adverse impact on its revenue from mutual fund distribution.

Its business operations are highly dependent on information technology. Failure or disruption of its IT systems may adversely affect its business, financial condition, results of operations and prospects.

Systems failures and resulting interruptions in the availability of its platform could adversely affect its business, financial condition, cash flows and results of operations.

Its may fail to detect money laundering and/or other illegal or improper activities in its business operations on a timely basis, which may have an adverse effect on its reputation, business operations,financial condition and results of operation.

There is outstanding litigation against the Company and its Subsidiaries, which if determined adversely, could affect its business and results of operations.

The company has undertaken and may continue to undertake strategic investments and alliances, acquisitions and mergers in the future, which may be difficult to integrate and manage. These may expose it to uncertainties and risks, any of which could adversely affect its business, financial conditions and result of operations.

The company require certain approvals and licenses in the ordinary course of business, and the failure to obtain or retain them in a timely manner may have a material adverse effect on its operations.

Any reduction in its commission or brokerage of other financial products could have adverse effect on its business, financial condition, cash flows, results of operations and prospects.

The company has entered into related party transactions and may continue to do so in future.

Its may be unable to detect and deter misconduct of the company employees or other third party service providers, or failure of its internal processes and procedures, which could harm its brand and its reputation, or lead to regulatory fines or litigation against the company.

Security breaches of clients` confidential information that its store may harm its reputation and expose it to liability.

The company cannot ensure that its intellectual property is protected from being copied or used by others, including its competitors, and intellectual property infringement actions may be brought against it, which could have a material adverse effect on its business.

Its may require additional equity or debt in the future in order to continue to grow its business, which may not be available on favorable terms or at all.

A majority of the immovable properties, including its Corporate Office, are leased. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be an adverse effect on its business, financial condition and operations.

Its Promoter and Promoter Group will continue to have significant shareholding in it after the Offer, which will allow them to exercise significant influence over the company.

Its Promoter, certain of its Directors and Key Management Personnel may be interested in the Company other than remuneration and reimbursement of expenses.

Its ability to pay dividends in the future will depend on its future cash flows, working capital requirements, capital expenditures and financial condition.

Its insurance coverage may not be adequate to protect it against all potential losses, which may have a material adverse effect on its business, financial condition and results of operations.

The company has commissioned and paid for an industry report from CRISIL Limited specifically for the purpose of the Offer, which has been used for industry related data in this Draft Red Herring Prospectus.

The company has not been able to obtain certain records of the educational qualifications of one of its Directors and have relied on an affidavit furnished by such Director for details of their profiles included in this Draft Red Herring Prospectus.

The company will not receive any proceeds from the Offer for Sale.