Computer Age Management Services (CAMS) is planning to raise about Rs 1,500 crore from the general public via initial public offering (IPO), which will open for subscription on September 21 to September 23. The price band is fixed at Rs 1,229-1,230 per share.
Just like Chemcon Speciality Chemicals, the bidding by anchor investors will take place on September 18.
The Chennai-based company seeks to raise Rs 2,240-2,242 crore from the market. The IPO consists an offer for sale of 1,82,46,600 equity shares by Great Terrain Investment, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, as per the draft papers filed with Sebi.
CAMS is the 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.
It has reserved 1,82,500 equity shares for employees who will get these shares at a discount of Rs 122 per equity share. Bids can be made for a minimum 12 equity shares and in multiples of 12 shares thereafter.
The company has an experience of over two decades, and works essentially as a services provider to mutual funds and other financial institutions. It charges a percentage of AUM to AMC and more fees from other mutual funds, depending on the category.
It provides services like record keeping, report generation, transaction, payments and settlement, brokerage compliance, dividend processing along with other integrated financial services.
"CAMS business model is asset-light. Hence, earnings are generously distributed among shareholders. It reports RoE of more than 25 per cent. Considering a healthy balance sheet, high return ratio, and market leadership position, the IPO will see strong interest across market participants,” said Jaikishan Parmar from Angel Broking.
The issue is being managed by Kotak Mahindra Capital, HDFC Bank, ICICI Securities and Nomura Financial Advisory and Securities. Link INtime is the registrar of the issue. NSE would divest its entire stake of 37.5 percent in CAMS.
First Published: IST