After the bumper listing of Happiest Minds and Route mobiles, The CAMS IPO is all set to hit the Dalal Street on 21 st September 2020. CAMS aims to raise a massive amount of ₹2244 crores through the IPO.
CAMS- Computer Age Management Services Ltd
Computer Age Management Services (CAMS) Ltd is a fintech driven financial infrastructure and service provider. CAMS is India’s largest registrar and transfer agent of mutual funds. As per the Crisil Nov 2019 report, it has a 69.4% mutual fund aggregate market share. CAMS currently provides technology-based services including dividend processing, transaction origination interface, payment, transaction execution, dividend processing, intermediary empanelment, report generation, investor interface, settlement and reconciliation, compliance-related services, and brokerage computation.
The company provides services in the area of electronic payment collections services business, insurance services business, alternative investment funds services business, banking, and non- banking services business, KYC registration agency business, and software solutions business. CAMS has a wide network comprising 25 states, 278 service centers, and five union territories. It also offers services online through a mobile application.
Objective of the Issue
To carry out the Offer for Sale of up to 18,246,600 Equity Shares by the Selling Shareholders; and Achieve the benefits of listing the Equity Shares on the BSE.
Basic details about CAMS
| Full name | Computer Age Management Services Ltd |
| Sector | Information Technology |
| Industy | BPO/ITES |
| Company Website | www.camsonline.com |
Dates to remember
| IPO Open | 21 September 2020 |
| IPO Close | 23 September 2020 |
| Basis of Allotment | 25 September 2020 |
| Refunds date | 28 September 2020 |
| Credit to Demat Account | 29 September 2020 |
| Listing Date | 01 October 2020 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹2242.51-₹2244.33 crores |
| Number of shares offered to the public | 18,246,600 shares |
| Face value | ₹10 per equity share |
| Price band | ₹1229-₹1230 per equity share |
| Retail portion | 35% |
| Lot size | 12 Nos |
| Minimum application | 1 lot – 12 shares |
| Maximum application | 13 lot – 156 shares |
| Minimum application amount | ₹14,760 |
| maximum application amount | ₹1,91,880 |
| Listing Exchange | BSE |
Offer Size by Investor Category
| Qualifies Institutional Buyers (QIB) | 50% |
| Non-Institutional Investors | 15% |
| Retail Investors | 35% |
Category-wise Break up:
Anchor: 35,94,570 Shares = Rs.530.20 Crores
QIB: 23,96,380 Shares = Rs.353.47 Crores
NII: 17,97,285 Shares = Rs.265.10 Crores
RII: 41,93,665 Shares = Rs.618.57 Crores (Lot size: 10 = 4,19,367 Forms)
Employee Quota: 1,82,500 Shares = Rs.26.46 Crores (@1450 per Share)
More details about the CAMS
The company is providing technology-based services including transaction, dividend, payment, settlement, brokerage computation, and compliance, and more electronic payment-related services. The PAT was reported around stood at Rs 711.49 crore in 2019 as compared to Rs 661.45 crore in 2018.
Incorporated in 1988, the company is India’s largest registrar and transfer agent of mutual funds today, with an aggregate market share of 70% based on mutual fund average assets under management (AAUM). The company’s MF clients include four of the five largest mutual funds and as well nine of the 15 largest mutual funds based on AAUM during July 2020.
As of July, CAMS serviced Rs 19.2 lakh crore of AAUM of 16 mutual fund clients, according to the Crisil report.
Anuj Kumar, President
and CEO at CAMS said, the MF business is the largest source of revenues for the company, but there are other businesses that the company has built-in over the last 5-10-years. They include the AIF business, insurance business, and electronic collections. He said the company has 39 percent market share in the insurance repository business, with 2.9 million policies held. In the case of the AIF business, the company has 77 AIF clients with an AAUMs of Rs 16,000 crore, Kumar said in a virtual conference.
Other Business
Besides, the company is into the verification and maintenance of KYC records of investors for use by finance institutions. Kumar said the company received account in-principle approval aggregators in May 2018 and would soon launch the business services.
Overall, revenues from the MF business stood at 86.9% in FY20 while non-MF businesses accounted for 13.1% of the total. The AIF business is somewhat similar to the MF business, Kumar said.
Overall, data processing activity accounted for 79% of the company’s revenues in FY20. Customer care services added another 8.94% Margin of 37% in FY20 was higher than 31% in FY19 but equals FY18’s 37%.
Strengths
1. Largest infrastructure and services provider of mutual fund
2. A diverse portfolio of technology-enabled services
3. Pan-India physical network
4. Scalable technology-enabled ecosystem
Financials
| Year | Revenue | EBITDA | OPM | PAT | NPM | Shares | FV | EPS |
| 2016 | 391.00 | 143.00 | 36.57% | 84.00 | 21.48% | 4.876 | 10 | 17 |
| 2017 | 472.00 | 183.00 | 38.77% | 108.00 | 22.88% | 4.876 | 10 | 22 |
| 2018 | 650.00 | 254.00 | 39.08% | 160.00 | 24.62% | 4.876 | 10 | 33 |
| 2019 | 711.00 | 261.00 | 36.8% | 130.00 | 18.28% | 4.876 | 10 | 26 |
| 2020 | 721.00 | 309.00 | 42% | 173.00 | 23% | 4.876 | 10 | 35 |
Summary of financials
| Particulars | For the year/period ended (₹ in Million) | |||
|---|---|---|---|---|
| 30-June-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Assets | 8,354.53 | 8,025.34 | 7,363.24 | 6,978.48 |
| Total Revenue | 1,634.61 | 7,213.43 | 7,118.08 | 6,578.20 |
| Profit After Tax | 408.25 | 1,734.56 | 1,308.95 | 1,463.05 |
Valuation of CAMS (as of FY2020)
| Earnings Per Share (EPS) | ₹35.54 |
| Price/Earnings (PE ratio) | 34.58 – 34.61 |
| Return on Net Worth (RONW) | 32.13% |
| Net Asset Value (NAV) | ₹110.71 per share |
Company Promoters
- Great Terrain Investment Ltd
Promoter holding pre IPO: 43.50%
CAMS IPO Lead managers
- HDFC Bank Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
- Nomura Financial Advisory And Securities (India) Pvt Ltd
Registrar of CAMS IPO
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: cams.ipo@linkintime.co.in
Website: http://www.linkintime.co.in
CAMS Contact Details
Computer Age Management Services Limited
No.158, Rayala Towers, Tower – I,
Anna Salai, Chennai 600 002
Phone: +91 44 2843 2650
Email: secretarial@camsonline.com
Website: www.camsonline.com
CAMS IPO Allotment Status
CAMS IPO allotment status will be available on Link Intime’s website.
Click on this link to get allotment status.
CAMS IPO subscription status
| No. of Times Issue Subscribed (BSE + NSE) | |||||
|---|---|---|---|---|---|
| QIB | NII | RII | Employee | Total | |
| Shares Offered | 3,612,820 | 2,709,615 | 6,322,435 | 182,500 | 12,827,370 |
| Sep 23, 2020 | 73.18x | 111.85x | 5.54x | 1.16x | 46.99x |
Final thoughts
CAMS IPO is going to hit Dalal street after the huge success of the happiest minds IPO and route mobiles IPO. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post gave you enough details to make a fundamental study of the company. learn well and make a wise decision.
happy investing
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