Computer Age Management Services (CAMS), a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions, is likely to launch its Rs 2,258.00 crore Initial public offering (IPO) on September 21, 2020.
CAMS had filed draft papers with Sebi in January this year and received its approval for draft prospectus in July. Retail investors can bid for a minumum one lot containing 12 shares and in multiples thereafter to a maximum 13 lots.
The company plans an entire offer for sale of up to 1.22 crore equity shares, which will open on September 21 and close on September 23.
The price band could be in the range of Rs 1,100-1,200 per share. The shares will have a face value of Rs 10 per share. CAMS will not receive the IPO proceeds as this is an offer-for-sale and not a fresh issue.
Headquartered in Chennai, the company is co-owned by Great Terrain Investment and public shareholders NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, as per DRHP. The entire IPO is an offer for sale by existing shareholders, through which investors are expected to partially offload their stake.Up to 4,144,600 equity shares are offered for sale by Great Terrain, up to 6,099,876 equity shares by NSEIL, up to 944,724 equity shares by Acsys, up to 487,600 equity shares by HDFC and up to 487,600 equity shares by HDB Trust.
NSE which has a 37% stake in CAMS, has withdrawn its nominee directors in the firm and decided to offer 12.5% stake in CAMS in their proposed IPO. This was under SEBI's directive, as NSE was in violation of Stock Exchange and Clearing Corporation (SECC) Regulations.
The company aims to divest its remaining stake in CAMS as well, it said in the annual report.
The Computer Age Management Services IPO will be the third this month and the fifth in the lockdown period (after Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds and Route Mobile).
CAMS claims to be India's largest registrar and transfer agent (RTA) serving several mutual funds in India. The company provides services of the transaction, payment, settlement and reconciliation, dividend processing, record keeping, report generation, intermediary empanelment and brokerage computation and compliance.
Kotak Mahindra Capital, HDFC Bank, ICICI Securities and Nomura Financial Advisory and Securities will be the lead managers to the issue.