CAMS IPO opens for subscription: Should you subscribe? Check valuation, price, bid size, stake sale details

Prior to the IPO opening for subscription, 35 anchor traders pushed in Rs 666.56 crore into the difficulty.

Computer Age Management Services (CAMS) preliminary public providing opens for subscription as we speak. The Rs 2,244-crore public difficulty doesn’t have any recent difficulty; it has solely an Offer For Sale of present shares by NSE Investment — a subsidiary of the National Stock Exchange — which is promoting its total 37.48% stake within the firm. Great Terrain Investments, the promoters of CAMS, is a Warburg Pincus subsidiary. The promoter group has already offered 12.5% fairness stake in pre-IPO offers to SBI MF, ICICI Pru MF, HDFC MF, SBI Life, IIFL AIF, Acacia Partners, Ashoka Trust, Edelweiss AIF, in keeping with IIFL Research. The promoter group won’t promote any additional stake within the IPO, and can maintain a 31% fairness stake in CAMS, towards the pre difficulty 43.5%.

The difficulty, which opens for subscription as we speak, will stay open for subscription until Wednesday, 23 September. The value band for the difficulty has been mounted at Rs 1,229-1,230 per share. Investors can bid for shares in lots of 12 fairness shares and multiples thereafter. The difficulty won’t see CAMS obtain any funds, however will solely see NSE Investment stroll away after promoting its stake. The difficulty has 90 lakh shares reserved for Qualified Institutional Buyers (QIB), 27 lakh shares for Non-Institutional Investors (NII), 63 lakh shares for Retail traders, and 1.82 lakh shares for Employees.

Anchor funding

Prior to the IPO opening for subscription, 35 anchor traders pushed in Rs 666.56 crore into the difficulty. 17 overseas portfolio traders, 13 home mutual funds, 3 insurance coverage corporations, and a couple of alternate funding funds had been a part of the anchor e-book allocation. Some of the overseas traders embrace, HSBC, Abu Dhabi Investment Authority, Fidelity Investment Trust, Goldman Sachs, Govt. of Singapore, Nomura Funds Ireland Public Ltd Company, Amundi, Generation IM Fund Pari Washington India, and WCM International.

Industry dominant participant

Serving the Mutual Fund trade as a registrar & switch company (RTA) service supplier, CAMS is a dominant participant within the area. The firm controls 70% of the market and counts 16 of the 41 mutual funds in India as its clients. These embrace, SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Kotak Mahindra Mutual Fund, amongst different high trade gamers. IIFL Research reveals that the overall AAUM of those mutual funds was at Rs 17.4 lakh crore.

Subscribe or not?

With a market dominating place, CAMS is an trade chief. “At a higher price band, CAMS valued at 35(x) FY20 P/E has leadership position, zero debt, healthy cash position and high return ratios,” stated LKP Securities in a notice. IIFL Securities stated that on the difficulty value CAMS is at a 10-15% low cost to listed AMCs, Exchanges and Depositories. Brokerage and analysis agency Motilal Oswal, Yes Securities, Motilal Oswal, and Geojit Financial Services all have a subscribe score on the IPO.

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