The much-awaited initial public offer (IPO) of Computer Age Management Services (CAMS), the registrar and transfer agent of mutual funds, will open on September 21. The share sale, which will end on September 23, will be priced between Rs 1229-Rs 1230.
The issue will involve sale of 1.82 crore shares through the offer for sale (OFS) route. Face value will be Rs 10 per equity share.
Shares of CAMS will be listed on BSE on October 1.
One can apply in the CAMS IPO with a lot size of 12 shares for Rs 14,760. Maximum 13 lots comprising 156 shares can be allotted to an individual for Rs 191,880.
The allotment of shares will be done on September 28 and initiation of refunds will be carried out on September 29.
The public issue consists of an offer for sale of 1.82 crore equity shares by NSE Investments, which intends to offload its entire stake of 37.48 per cent in its associate company CAMS via IPO.
Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking said,"The company is India's largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70 percent 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. CAMS business model is asset-light, Hence, earnings are generously distributed among shareholders. Considering a healthy balance sheet, high return ratio, and market leadership position, IPO will see strong interest across market participants."
NSEIL, the subsidiary of National Stock Exchange (NSE) owns 37.48 per cent stake in CAMS, followed by 5.99 per cent by HDFC, 3.33 per cent by HDFC Bank, 3.19 per cent by HDFC Trust, 4 per cent by Faering Capital India and 1.94 per cent by Acsys. Great Terrain, owned by Harmony River Investment, is the promoter of CAMS with 43.53 percent shareholding.
Lead managers for the IPO are HDFC Bank, ICICI Securities, Kotak Mahindra Capital and Nomura Financial Advisory And Securities (India) Pvt Ltd.
By Aseem Thapliyal