The Economic Times
English EditionEnglish Editionहिन्दीગુજરાતી
| E-Paper

    CAMS IPO price band fixed at Rs 1,229-1,230; issue to open on Monday


    The anchor allotment will be announced on Friday. The IPO will close on September 23.

    Related Companies



    NEW DELHI: Computer Age Management Services' (CAMS) IPO will hit the primary market on Monday, September 21, with the firm setting the price band for the issue at Rs 1,229-1,230 per share. The initial public offering (IPO) will be an offer for sale (OFS) of 1,82,46,600 shares by NSE Investments which at the upper limit of the price band suggests an issue size of Rs 2,242 crore.

    The anchor allotment will be announced on Friday. The IPO will close on Sep 23.

    "The company 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. CAMS charges a percentage of AUM to AMC and charges more fees from equity mutual funds as compared to other categories of mutual funds. Change in the mix of the mutual fund industry towards higher equity and the buoyant market will be beneficial for CAMS revenue growth," said Jaikishan Parmar of Angel Broking.

    "CAMS business model is asset-light. Hence, earnings are generously distributed among shareholders. It reports RoE of more than 25 per cent. Considering a healthy balance sheet, high return ratio, and market leadership position, the IPO will see strong interest across market participants,” Jaikishan Parmar said.

    CAMS claims to be India's largest registrar and transfer agent with a market share of 69.4 per cent, based on mutual funds' average assets under management, as of November 2019.

    It offers integrated services for receipt, verification and processing of financial and non-financial transactions for the BFSI (banking, financial services and insurance) sector, largely the mutual fund industry.

    It also provides services of transaction, payment, settlement and reconciliation, dividend processing, record keeping, report generation, intermediary empanelment and brokerage computation and compliance.

    Headquartered in Chennai, it is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group. But after the recent Sebi direction, NSE would divest its entire stake of 37.5 per cent in CAMS.

    NSEIL, an NSE arm, held 37.5 per cent stake, or 1,82,85,000 shares in CMS as of March 31, 2019, as per NSE's annual report for FY2019-2020.

    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.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

    Also Read

    4 Comments on this Story

    Rahul Singh14 days ago
    It's 12 shares per lot as it is close to 15,000 which is a trend in most of the cases.
    Mangala Mitna Mitna15 days ago
    on google lot size is shown 44 shares kindly clarify is it 12 shares or 44 shares
    Mukesh Shah15 days ago
    Total amount of lot
    The Economic Times