Computer Age Management Services(CAMS IPO Review)


Computer Age Management Services or CAMS is a technology-driven financial infrastructure and service provider. It 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. The article is about cams IPO review.

About the Company

CAMS is currently giving various services like technology-based services. It includes 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.

  • As I have mentioned that CAMS gives services in multiple areas like electronic payment, insurance business services, alternative investment services, banking-non banking services, KYC registration business, etc.
  • The company has a wide network that spread around 25 states, 278 service centers, and five union territories. CAMS also offers an online service and a mobile app.

Competitive 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

Company Promoters:

Great Terrain Investment Ltd is the promoter of the company.

Objects of the Issue:

The objects of the Offer are:

1. For carrying out the Offer for Sale of up to 18,246,600 Equity Shares by the Selling Shareholders;

2. CAMS want to achieve the benefits of issuing shares in the Indian Stock Exchange.

3. One of the most important objective behind issuing shares is accquire capital. They are planning to utilize it in extension of business.

CAMS IPO Details

IPO Date Sep 21, 2020 – Sep 23, 2020
Issue Type Book Built Issue IPO
Issue Size 18,246,600 Eq Shares of ₹10
(aggregating up to ₹2,244.33 Cr)
Offer for Sale 18,246,600 Eq Shares of ₹10
(aggregating up to ₹2,244.33 Cr)
Face Value ₹10 per equity share
IPO Price ₹1229 to ₹1230 per equity share
Employee Discount 122
Market Lot 12 Shares
Min Order Quantity 12 Shares
Listing At BSE

CAMS IPO Tentative Date / Timetable

Bid/Offer Opens On Sep 21, 2020
Bid/Offer Closes On Sep 23, 2020
Finalisation of Basis of Allotment Sep 28, 2020
Initiation of Refunds Sep 29, 2020
Credit of Shares to Demat Acct Sep 30, 2020
IPO Shares Listing Date Oct 1, 2020

CAMS IPO Lot Size and Price (Retail)

Application Lots Shares Amount (Cut-off)
Minimum 1 12 ₹14,760
Maximum 13 156 ₹191,880

CAMS IPO Promoter Holding

Pre Issue Share Holding 43.53%
Post Issue Share Holding

CAMS IPO Offer Size by Investor Category

The Percentage of Offer Size available for Allotment/allocation:

  • QIBs: 50%
  • Non-Institutional Investors: 15%
  • Retail Individual Investors: 35%

CAMS IPO Employees Reservation

CAMS IPO has certain reservation rules for its employees. A discount of ₹122 per Equity Share is being offered Eligible Employee Bidding in the Employee Reservation Portion. up to 182,500 Equity Shares are reserved for employees. Note:

  • When using UPI as a payment method, the primary account holder in the bank and demat should be the same person. Use of 3rd party UPI ID or 3rd party bank account is not allowed.
  • When using ASBA, up to 5 CAMS IPO applications can be applied from the same bank that offers the 3rd Party ASBA IPO application.
  • HUF and Minors can only apply using ASBA from the banks that offer the 3rd Party ASBA IPO application. i.e. SBI, Axis bank. 

Risks to Investors

  • The 4 Lead Managers associated with the Offer have handled 17 public issues in the past three years out of which 6 issues closed below the issue price on the listing date.
  • The PE ratio based on diluted EPS for FY 2020 for the Issuer at the upper end of the Price Band is as high as 34.61.
  • Average cost of acquisition of Equity Shares for the Selling Shareholder namely NSE Investments Limited is Rs 187.86 per Equity Share and the Offer Price at the upper end of the Price Band is Rs 1,230 per Equity Share.
  • Weighted Average Return on Net Worth for Fiscals 2020, 2019, and 2018 is 31.40%.

Company 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

CAMS IPO Review

In the above financials, 3 years’ records are given. As you can see that only in the FY20, 1 quarter result is given. In FY 18, the PAT (profit after tax) was 1,463.05. Next FY 19, the PAT was 1,308.95 and FY 20 has 1.734.56. So it is been noticed that the profit is strong enough for this company. As per the DRHP (draft red herring prospectus) the PE, EPS, RoNW is also good. As per our report, 9 out of 10 top brokers give cams IPO review POSITIVE remarks. You may check the bid details of the company IPO from the official BSE site.



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