CAMS IPO: Open for a subscription today; know it in detail

Computer Age Management Services Limited (CAMS) initial public offer (IPO) will open for subscription today, i.e. on September 21, 2020. The issue will be open for trading days between September 21 and September 23. The price band of the issue has been fixed at Rs 1,229-1,230.

Ahead of the Rs 2,242 crore IPO, CAMS raised over Rs 660 crore from 35 anchor investors, including SmallCap World Fund, Abu Dhabi Investment Authority, HSBC, Caisse de Depot et Placement First State Investments, Eastspring Investments, Government of Singapore, Fidelity Investment Trust, Goldman Sachs and Nomura Funds Ireland Public Ltd.

The retail investors can bid for a minimum one lot. The lot size of CAMS IPO is 12 when means that investors have to apply for a minimum of 12 shares and in multiples thereof. The shares of CAMS are proposed to be listed on both BSE and NSE. According to brokerages, the share allocation is likely to be finalised on 28 September while the listing is likely to happen on October 1, 2020.

Minimum application for retail at upper price band for one lot is ₹14,760. A retail investor can apply for a maximum of 13 lots. Link Intime India Pvt Ltd is the registrar of the IPO.

Computer Age Management Services Limited (CAMS) is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with over two decades of experience. It is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group. It is India's largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70 per cent based on mutual fund average assets under management (AAUM) managed by its clients and serviced by it during July 2020, according to the CRISIL Report. It provides technology-based services such as dividend processing, transaction origination interface, settlement and reconciliation, compliance-related services etc.

Its total income for the three months ended June 30, 2020, and the financial year 2020 was Rs 1,634.61 million and Rs 7,213.43 million, respectively. Its profit after tax for the three months ended June 30, 2020, and the financial year 2020 was Rs 408.25 million and Rs 1,734.56 million, respectively.

Competitive Strength (based on a report by ICICI Direct)

Largest Infrastructure and Services Provider in a Large and Growing Mutual Funds Market: The ten-year CAGR of QAAUM (Quarterly Average AUM) of mutual funds between March 2010 and March 2020 was 13.4 per cent according to the CRISIL Report, while the ten-year CAGR of QAAUM of mutual funds serviced by CAMS over the same period was 15.8 per cent.