The volatility in market has cast a shadow over the listing of Computer Age Management Services (CAMS) stock on October 1. Grey market premium of CAMS share has reduced to Rs 300 from the earlier Rs 500 after Sensex and Nifty ended in the red during a volatile last week. In a six-day losing streak, investors lost Rs 11.32 lakh crore wealth till March 24.
On a weekly basis, Sensex crashed 1,457.16 points or 3.83 per cent, while Nifty tumbled 454.70 points or 4.04 per cent. The sudden crash in investor sentiment has pared likely listing gains of CAMS IPO.
The IPO which had a price band of Rs 1,229-1,230 may make its market debut at Rs 1,550 on BSE and NSE.
Jaikishan Parmar - senior Equity Research Analyst at Angel Broking said, "It is an asset-light business model. Hence, at end of the year, investor can expect a healthy dividend, and there is a possibility that dividends per share might increase every year. Considering strong revenue visibility, healthy financials, and generous dividend payout policy, investors can expect more than 20% listing gains."
CAMS IPO was subscribed 47 times on the final day of subscription on September 23, 2020. The IPO received bids for 60,09,50,796 shares against the offer size of 1,28,27,370 shares.
The allotment of shares was done on September 28 and initiation of refunds will be carried out on September 29.
The public issue consisted of an offer for sale of 1.82 crore equity shares by NSE Investments, which offloaded its entire stake of 37.48 per cent in its associate company CAMS via IPO.
Abhijeet Ramachandran, independent analyst at Tips2trade said,"CAMS is a very strong fintech company with a different dominant market share in the industry. Currently, the grey market premium has reduced to 12-13% returns. With events like Q2FY21 results & US elections lined up in the coming months, market including financials could see a lot of volatility in the near term. Investors getting subscription should look to keep booking profits on the listing date & add more only on further dips."
Lot size of CAMS IPO was 12 shares for Rs 14,760. Maximum 13 lots comprising 156 shares could be allotted to an individual for Rs 191,880.
Lead managers for the IPO were HDFC Bank, ICICI Securities, Kotak Mahindra Capital and Nomura Financial Advisory And Securities (India) Pvt Ltd.