Prudent Corporate Advisory Services Limited announced its Board of Directors has approved an investment of up to ₹6.53 crore in its wholly-owned subsidiary, Prutech Financial Services Private Limited. This investment, via a rights issue subscription, aims to support the subsidiary’s business expansion, particularly its diversification into portfolio management services and meeting regulatory net worth requirements. The Board also approved the company’s un-audited financial results for the quarter and half-year ended September 30, 2026, and the allotment of 1,190 equity shares under its ESOP scheme.
Board Approves Key Investment and Financial Results
Prudent Corporate Advisory Services Limited’s Board of Directors convened on October 28, 2026, to consider and approve significant corporate actions. The meeting resulted in the approval of the company’s un-audited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. Additionally, the Board sanctioned the allotment of 1,190 equity shares under the ‘ESOP – Prudent Employee Stock Option Scheme 2025’ to eligible employees.
Strategic Investment in Wholly-Owned Subsidiary
A major resolution passed during the meeting was the approval of an investment of up to ₹6,53,40,000 (Rupees Six Crore Fifty-Three Lakh Forty Thousand Only) in its wholly-owned subsidiary, Prutech Financial Services Private Limited. This investment will be made through a subscription to the rights issue, involving up to 1,80,000 equity shares of Prutech Financial Services Private Limited at an issue price of ₹363 per share. The total paid-up capital of Prutech post-investment is projected to be ₹28,00,000.
Objectives and Impact of Investment
The primary objective behind this strategic investment is to support the expansion of Prutech’s business, particularly its proposed diversification into portfolio management services. The infused funds will be used to augment Prutech’s net worth, enabling it to meet regulatory requirements for registration as a Portfolio Manager under SEBI regulations and to address its working capital needs. Prutech Financial Services Private Limited is engaged in financial services, aligning with the core business of the parent company.
Subsidiary Details and Shareholding
Prutech Financial Services Private Limited, incorporated on December 7, 2005, reported a turnover of ₹154.51 Lakhs and a net worth of ₹288.04 Lakhs as of March 31, 2026. The investment does not alter the Company’s shareholding percentage, maintaining its status as a wholly-owned subsidiary. Mr. Sanjay Shah and Mr. Shirish Patel, Directors of Prudent Corporate Advisory Services, also serve as Directors on Prutech’s Board.
Financial Highlights
The un-audited standalone financial results show total income of ₹38,249.96 Lakhs and profit after tax of ₹6,977.42 Lakhs for the quarter ended September 30, 2026. For the six-month period ended September 30, 2026, total income stood at ₹73,539.65 Lakhs with a profit after tax of ₹13,837.17 Lakhs.
Source: BSE
