CAMS IPO opens for subscription. Here’s what you need to know
The Chennai-based CAMS acts as a registrar and transfer agent (RTA) for mutual funds and provided technology-driven financial infrastructure and services provider to mutual funds and other financial institutions.Updated: Sep 21, 2020, 14:59 IST
Computer Age Management Services (CAMS) Limited launched its first initial public offering (IPO) for subscription on Monday, with a price band of Rs 1,229-1,230 per share.
The Chennai-based CAMS acts as a registrar and transfer agent (RTA) for mutual funds and provided technology-driven financial infrastructure and services provider to mutual funds and other financial institutions.
CAMS raised more than Rs 660 crore from 35 anchor investors, including SmallCap World Fund, HSBC, Abu Dhabi Investment Authority, Caisse de Depot et Placement First State Investments, Eastspring Investments, Fidelity Investment Trust, Goldman Sachs, Government of Singapore, Nomura Funds Ireland Public Ltd ahead of the Rs 2,250 crore IPO. This happened on September 18.
The issue, which closes on Wednesday, was nearly 20% subscribed by around 12pm.
Here’s what you need to know about the CAMS IPO:
* CAMS’ chief executive Anuj Kumar has said NSE decided to sell its entire holding in the company after capital markets watchdog Securities and Exchange Board of India (Sebi) directing the top equity bourse to pare its holding in the company.
* The shares of CAMS are proposed to be listed on both BSE and NSE. Link Intime India Pvt Ltd is the CAMS IPO’s registrar. The issue is being managed by Kotak Mahindra Capital Co Ltd, HDFC Bank Ltd, ICICI Securities Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd.
* The CAMS IPO consists of an offer for sale of 1,82,46,600 equity shares where NSE Investments, a subsidiary of National Stock Exchange, will be selling its shares. All the money raised will go to NSE Investments and the company will not get any money from this offer.
* Half of the issue is reserved for qualified institutional buyers, 35% to retail investors, 15% to non-institutional bidders and there is a reservation of 1.82 lakh shares for employees, who will get the shares at a 10% discount.
* The lot size of CAMS IPO is 12 or investors have to apply for a minimum of 12 shares and in multiples thereof. According to brokerages, the share allocation is likely to be finalised on 28 September while the listing is likely to happen on October 1.
* Minimum application for retail at upper price band for one lot is Rs 14,760. A retail investor can apply for a maximum 13 lots.
* CAMS is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group. The entire quantum of shares being sold to investors in CAMS IPO is NSE’s 37.4% holding or 1.82 crore shares.
* CAMS, India’s largest registrar and transfer agent (RTA) of mutual funds, has an aggregate market share of around 70% based on mutual fund AUM managed.
* CAMS had posted a 1% rise in total income in FY20 at Rs 721 crore as the expense ratios got compressed. It made up for it through an expansion in operating profit margins to 37%, which resulted in the profit after tax growing 25% to Rs 173 crore.
(With agency inputs)