CAMS Approves ₹8 Crore Investment in Subsidiary CAMS Financial Information Services

Computer Age Management Services approved ₹8 crore investment in CAMS FIS, a wholly owned subsidiary, through a rights issue. The capital infusion will be made in multiple tranches and is aimed at meeting regulatory net worth requirements.

Investment Details

This investment will be made in one or more tranches, with the first tranche expected to be completed by December 31, 2024. Separate filings will be done when additional tranches are made, the company said in a press release on the stock exchanges.

The company will continue to hold 100% of the shareholding in CAMS FIS. The shares will be acquired at face value, with no regulatory approvals required for this transaction.

Investment Objective

The main goal of the additional investment is to ensure compliance with the aggregator regulation, which requires a minimum net worth of ₹2 crore. The company plans to inject further capital by December 2024.

CAMS FIS Sees Growth

CAMS FIS, which operates in the NBFC account aggregator industry, has shown a significant increase in turnover, reaching ₹68.01 lakhs in FY 2023-24, up from ₹2.66 lakhs in FY 2022-23. The company aims to fulfil its regulatory obligations through this strategic investment.

About CAMS

CAMS is a leading technology-driven provider of financial infrastructure and services to mutual funds and financial institutions in India. With over 25 years of experience, it serves approximately 68% of India’s mutual fund assets under management as of July 2024. CAMS offers innovative, technology-enabled solutions to the mutual fund, alternatives, and insurance industries, ensuring operational efficiency through its proprietary platforms and data centres.

Share Price Performance

On December 30, 2024, Computer Age Management Services’ share price traded 0.74% higher at ₹5,079 at 10:50 AM on the NSE. The stock opened at ₹5,016.15, lower than the ₹5,041.75 at the previous close.

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