The IPO of CAMS, which acts as a registrar and transfer agent (RTA) for mutual funds, opens on Monday and closes on September 23. The price band has been set at between ₹1,229-1,230 per share and the company will raise ₹2,242 crore at the upper end of the band. The lot size of CAMS IPO is 12 when means that investors have to apply for a minimum of 12 shares and in multiples thereof. CAMS IPO comes amid a jump IPO activity lately, and it is the biggest offering by size in the recent times.
Here are 10 things to know about CAMS IPO:
1) CAMS is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions.
2) The entire quantum of shares being sold to investors in CAMS IPO is NSE’s holding and there will not be any new issue of shares. The offer will see sale of 1,82,46,600 equity shares or 37.4 per cent stake by NSE Investments, the subsidiary of National Stock Exchange (NSE).
3) CAMS CEO Anuj Kumar said NSE decided to sell its entire holding in the company after capital markets watchdog Securities and Exchange Board of India (Sebi) directing the top equity bourse to pare its holding in the company.
4) The company counts on other investors including private equity major Warburg Pincus and the HDFC Group, who will continue to be invested.
5) 35% of the CAMS IPO issue is reserved for retail investors while there is a reservation of 1.82 lakh shares for employees, who will get the shares at a 10%.
6) CAMS claims to be India’s largest registrar and transfer agent of mutual funds with a market share of nearly 70%.
7) The issue is being managed by Kotak Mahindra Capital Co Ltd, HDFC Bank Ltd, ICICI Securities Ltd and Nomura Financial Advisory and Securities (India)
8) “CAMS derives almost 72% of the revenues as a direct charge to AMC on their AAUM. Hence, it is a direct proxy on growth in AUMs for the asset management companies,” Yes Securities said in a note.
9) Link Intime India Pvt Ltd is the registrar of CAMS IPO. It will manage the share allocation and refund.
10) There are no listed peers whose busienss operations are comparable to CAMS. CDSL performs one of the functions similar to CAMS, so it can be considered a proxy peer, Choice Broking said in a note.