Are you looking for more information on CAMS IPO? Here we have covered an exclusive CAMS IPO review with a strong focus on its objectives, pricing, IPO size, financials, and other relevant details. Let’s unfold them one by one.
CAMS IPO: A Quick Review
Computer Age Management Services Ltd. (CAMS), is the largest mutual fund distributor and registrar in the country. Thousands of wealth management companies are associated with the group for their tech server, MF software, and excellent customer support. As per the Crisil November 2019 report, CAMS holds 69.4% of the Mutual fund market. The company is now all set to launch an Initial public offering that the investors are highly optimistic about.
This financial service provider is spread through 278 service centers in 25 states and 5 union territories. The lead managers include Kotak Mahindra, HDFC Bank, ICICI Bank, and Nomura Financial Advisory and Securities.
It provides technological services like transaction, redemption, brokerage, Insurance, KYC registration, and digital payment-related services. Apart from this, they also offer The Financial growth of the company is seen to rise in recent years. Their profit after tax was approximately 711 crore in 2019 as compared to 660 crores in 2018.
CAMS is a leading Financial company, SEBI regulated entity employing a workforce of around 700 as of now. Headquartered in Chennai, It has managed to create a good reputation in the market since its inception back in 1998.
CAMS IPO: Important Dates
The IPO is set to launch on 21st September 2020 and stay on the window till 23rd September 2020. The final allotment will be decided by the 28th of September and the queries and refund will take place until one day after that. you will receive the allotted shares in the Demat account by the end of this month i.e 30th September.
CAMS IPO Dates to Note:
| Bid Opens | 21st September,2020 |
|---|---|
| Bid Closes | 23rd September,2020 |
| Final Allotment | 28th September,2020 |
| Refund Initiation | 29th September,2020 |
| Credit of Shares | 30th September,2020 |
Note: The dates are tentative right now and could be updated when confirmed ones are released.
CAMS IPO: Price Band and Market Lot
The IPO is set to raise around Rs. 2258 cr. divided into 18,246,600 shares of Rs.10 each. It is a book built type IPO with the price range Rs. 1220-rs.1530 per share. The employee discount of 10% is valid on all new purchases. You have to place the order of a minimum of 12 shares and a maximum of 156 shares. so the minimum amount you can subscribe to is Rs. 14,760 and a maximum of Rs. 191,880. currently, CAMS’ promoters hold 43% of the shares.
CAMS IPO Size, Price Band
Here’s a table displaying the CAMS IPO Size, Price Band, etc.
| IPO Size | Rs.18,246,600 |
|---|---|
| IPO Type | Book Built Issue |
| Price Band | Rs.1229- Rs.1230 |
| Minimum Lot Size | 12 shares of Rs.14,760 |
| Maximum Lot Size | 156 shares of Rs.191,880 |
Category-wise details of IPO
| Category | No. of Shares | Rs. in cr. |
|---|---|---|
| Anchor | 35,94,570 | Rs.530.2 |
| QIB | 23,96,380 | Rs.353.47 |
| NII | 17,97,285 | Rs.265.10 |
| RII | 41,93,665 | Rs.618.57 |
| Employee Quota | 1,82,500 | Rs.26.46 |
| Total Issue | 1,21,64,400 | Rs.1,793.79 |
CAMS Promoters
The major promoter of the Company is Great Terrain Investment Limited.
The company is co-owned and backed by Warburg Pincus LLC (global private equity), NSE Investment Limited (NSEIL, a subsidiary of NSE), HDFC Bank group, and Acsys Investments Private Limited.
CAMS Shareholders (Before the IPO)
Now, Let’s look at the shareholding pattern of the company before going public.
| Shareholders | No. of Shares | % Holding |
|---|---|---|
| Great Terrain | 21,224,000 | 43.53 |
| NSEIL | 18,285,000 | 37.48 |
| HDFC | 2,920,724 | 5.99 |
| HDFC Bank | 1,623,708 | 3.33 |
| HDB Trust | 1,555,444 | 3.19 |
| Fearing Capital India Evolving Fund 2 | 1,241,430 | 2.55 |
| Acsys | 944,724 | 1.94 |
| Fearing Capital India Evolving Fund 3 | 708,970 | 1.45 |
| Total | 48,504,000 | 99.47 |
Important: NSEIL is interested to fully divest its 37.48% share in CAMS.
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CAMS’s Financial Records: Past 3 Years
Below given is the record of assets and revenue of CAMS and the profits it made in recent years.
| Particulars | For the Period Ended | For the Year Ended | For the Year Ended | For the Year Ended |
|---|---|---|---|---|
| 30.6.20 | 31.3.20 | 31.3.19 | 31.3.18 | |
| Total Assets (Rs. in million) | 8354.53 | 8025.34 | 7363.24 | 6978.48 |
| Total Revenue (Rs. in million) | 1634.61 | 7213.43 | 7118.08 | 6578.2 |
| Profit after tax (Rs. in million) | 408.25 | 1734.56 | 1308.95 | 1463.05 |
CAMS IPO: How to Apply?
Now the big question arises that where should you apply for the CAMS IPO? You can subscribe to the IPO in many ways.
One is using the ASBA in your bank account. ASBA refers to an application supported by a blocked amount and you can easily find it in your bank’s login portal. When you log in to your account, you will see the CAMS section under the investment dropdown. Simply click on CAMS IPO to proceed.
Another way to go about it is by using your stock broker’s portal to apply for the IPO. In that case, visit the stock broker’s website or place an order on call if available. The CAMS IPO forms are available on the National Stock Exchanges’ website as well. You can take out a physical copy from the NSE or BSE portal and submit to your bank or broker.
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CAMS IPO: Key Points to Consider
- 182,500 shares are reserved for the company employees on which they can avail of a discount of Rs.122 per equity share.
- If you are using UPI as the mode of payment, the primary bank account and Demat account should be of the same person. You can not use a 3rd person’s UPI or Demat account.
- Up to 5 IPO applications can be applied at the same time if you are using ASBA mode
- HUF and Minors can only apply only through the banks that allow 3rd party IPO applications i.e SEBI and Axis Bank.
- The leading managers of CAMS have been a part of 17 IPOs in the last three years, out of which 6 have been under-subscribed.
- The weighted average return of the company for fiscal years 2020,2019 and 2018 on net worth is 31.40%
Company Contact Details
You won’t need the address and other contact details while deciding to apply for this IPO, but for informational purposes, we are sharing it.
Registered Office Address:
New No. 10, Old No. 178, M.G.R.
Salai, Nungambakkam, Chennai 600 034,
Tamil Nadu, India; Tel: +91 44 2843 2770
Corporate Office Address:
No.158, Rayala Towers,
Tower – I, Anna Salai, Chennai 600 002,
Tamil Nadu, India; Tel: +91 44 2843 2650
Website: www.camsonline.com; www.linkintime.co.in
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CAMS IPO: FAQs
Few common queries have been answered here:
Q. Can anchor investors apply for CAMS IPO?
A. Yes, the bidding for anchor investors begins on 21st September 2020.
Q. When can QIB, NII, and Retail investors apply?
A. The bidding for QIB, NII, and retail investors begin on 22nd September 2020.
Q. How to apply for CAMS IPO through Zerodha?
A. Login to the Zerodha Kite console, go to the portfolio, search for IPOs, and then select the CAMS IPO and apply online.
Q. Is there any other CAMS IPO coming this year?
A. There hasn’t been any information for another IPO in 2020. If there is one, we’ll add that too.
Q. Will I get a discount if I am a CAMS employee?
A. Yes, the discount percentages are already stated above.
Q. What is the face value of IPO shares?
A. The shares are priced at Rs.10 per equity share.
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Computer Age Management Services or CAMS IPO: Final Words
The objective of this IPO is to increase the company’s valuation up to Rs.6000 cr. The promoters are seeking it to expand the brand value of CAMS through this offering and develop more advanced and tech-savvy investment solutions in the future. Let’s see how it goes!
Hope this helped you gain insights on the upcoming IPO. Feel free to comment down below if it’s a good take? What do you think? Are you thinking to subscribe to the CAMS IPO? What do you think, is it a good investment opportunity? Do share your feedback on the same.