The initial public offer (IPO) of Computer Age Management Services (CAMS) is scheduled to open on Monday. The issue closes on September 23. Chennai headquartered company has raised Rs 666.57 crore from anchor investors ahead of the opening of the public offer. A total of 35 investors, including 17 FPIs and 13 mutual funds, participated in the anchor's book.
Here are 7 key things to know:
The lot size of the IPO is 12, implying investors have to apply for a minimum of 12 shares and in multiples thereof.
Minimum application for retail at upper price band for one lot is Rs 14,760. A maximum of 13 lots can be applied by the retail investors.
The CAMS offering will see sale of 1,82,46,600 equity shares or 37.4 per cent stake by NSE Investments, the subsidiary of National Stock Exchange (NSE).
The initial share-sale is expected to fetch Rs 2,240 crore to Rs 2,242 crore.
CAMS is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions.
The company claims to be India's largest registrar and transfer agent of mutual funds with a market share of nearly 70 per cent, based on mutual fund average assets under management (AAUM), as of November 2019. CAMS is co-owned by NSE Investments, Warburg Pincus, Faering Capital, ACSYS Investments and HDFC Group.
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.
"CAMS enjoys a 70% market share in a market with high entry barriers, giving it a valuable moat. It has also delivered strong margins and returns consistently, with negative working capital. Given factors such as healthy free-cash flows, debt-free status, strong return ratios, healthy operating margins and no listed peers, we remain positive on the prospects of the issue," INDmoney said in a report.