Computer Age Management Service (CAMS) has filed with the exchange to float IPO shares during the third week of September. The offer will remain open from September 21 until September 23. It is going to be an offer for sales equity shares from promoters.
CAMS is a Chennai based financial service and infrastructure provider; offering solutions to mutual funds and other financial institutions in dividend processing, payment and transaction execution, investor interface, report generation, and compliance-related matters. It offers customised solutions in electronic payment collections, KYC registration agency business, and software solutions business. According to a CRISIL report in November 2019, CAMS has 69.4 percent mutual funds aggregate market shares. Currently, the firm has 278 offices in 25 states and five union territories.
The Key Points To Note About CAMS IPO
- CAMS IPO offer will begin on September 21. Retail investors can subscribe for a minimum of one lot, comprising 12 shares, and in multiples thereafter for a maximum of 13 lots
- The offer comprises an offer for sale equities from the leading promoters Great Terrain Investment Ltd. and NSE Investment
- The target is to raise Rs 2,258.00 crore in IPO from the sale of 1.22 crores offer for sale equity shares
- NSE Investment which is currently holding 37 percent stakes in the company, has agreed to offload 12.5 percent stakes in CAMS under SEBI’s directive for violating Stock Exchange and Clearing Corporation (SECC) Regulations
- The other promoters Acsys Investments, HDFCand HDB Employees Welfare Trust, are also participating
- The company said the funds would go entirely to the promoters
- According to the draft red herring prospectus filed by the company the shares will launch in the price band of Rs1,100-1,200 apiece
- Each share will carry a face value of Rs 10
- CAMS IPO will be the third in this month and firth during the lockdown period
- Kotak Mahindra Capital, HDFC Bank, ICICI Securities, and Nomura Financial Advisory and Securities are going to be the leading book managers
- The company will list its shares in BSE
Should you subscribe to CAMS IPO?
Computer Age Management Services applied to SEBI in January this year to float IPO offer. They received the green signal in July. The company is the largest registrar and transfer agent for several mutual funds and has PAN India presence, operating in a scalable technology-enabled ecosystem. On the financial frontier, the company revenue and profit, both have shown steady growth over the period. According to the data available for September 2019, it has a revenue of Rs 3,600.29 million and a profit of Rs 827.49 million.
The Indian IPO market is abuzz with activities once more. The lockdown had taken a toll on it, and for at least four months, there was a drought in the market with no new IPO launches. But since Rossari Biotech launched its IPO in July, there is a deluge of new offers, matched equally by the enthusiasm from investors.
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