The initial public offer (IPO) of Computer Age Management Services (CAMS) received an overwhelming response, subscribed as much as 46.93 times on the last day of bidding. The offer-for-sale issue received bids for 1.38 crore equity shares against the offer size of 1.28 crore equity shares. The quota for qualified institutional bidders (QIBs) was subscribed 73.18 times, retail quota 5.54 times and the employees' quota 1.16 times.
The Rs 2,242-crore IPO of the technology-driven financial infrastructure and services provider to mutual funds and other financial institutions opened on September 21 and ended on September 23, at a price band of Rs 1229-Rs 1230.
The allotment date for Computer Age Management Services (CAMS) IPO is scheduled today, while listing of its equity shares on NSE and BSE will be on October 1, 2020.
Those who had bid for the issue can check the subscription status on the online portal of Link Intime India Private, the registrar to the issue.
Here's how to check Computer Age Management Services (CAMS) IPO allotment status
- Go to the online portal of Link Intime India (linkintime.co.in).
-Click on the drop-down menu and select the company name as Computer Age Management Services (CAMS) in the drop-down menu of the investor's centre section.
- Enter your Permanent Account Numbers (PAN) or application number or Client ID.
- After entering the given captcha code, investors can click on submit button and view their allotment status.
Applicants can also check their IPO allotment status on the BSE website
-Select Equity and then from the dropdown, select issue name- CAMS.
-Enter your Permanent Account Numbers (PAN) or application number and click Search
The issue was managed by Kotak Mahindra Capital Co Ltd, HDFC Bank Ltd, ICICI Securities Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd. Computer Age Management Services (CAMS) had raised Rs 666.57 crore from anchor investors a day ahead of IPO. 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. Headquartered in Chennai, CAMS is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group.
"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.
"The opportunity landscape for the MF business in India is huge, given low penetration and financialisation of household (HH) savings, thus providing long-term visibility. At Rs 1,230 per share (IPO price), CAMS is priced at 35x FY20 EPS, at a 10-15 per cent discount to listed AMCs, Exchanges and Depositories. We expect the stock to trade in-line with other comparables and further re-rate," said IIFL Securities while assigning subscribe call.
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 per cent 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."