CAMS IPO opens for subscription. Here’s what you need to know

Computer Age Management Services (CAMS) Limited launched its first preliminary public providing (IPO) for subscription on Monday, with a value band of Rs 1,229-1,230 per share.

The Chennai-based CAMS acts as a registrar and switch agent (RTA) for mutual funds and supplied technology-driven monetary infrastructure and providers supplier to mutual funds and different monetary establishments.

CAMS raised greater than Rs 660 crore from 35 anchor traders, together with SmallCap World Fund, HSBC, Abu Dhabi Investment Authority, Caisse de Depot et Placement First State Investments, Eastspring Investments, Fidelity Investment Trust, Goldman Sachs, Government of Singapore, Nomura Funds Ireland Public Ltd forward of the Rs 2,250 crore IPO. This occurred on September 18.

The situation, which closes on Wednesday, was almost 20% subscribed by round 12pm.

Here’s what it is advisable to know concerning the CAMS IPO:

* CAMS’ chief government Anuj Kumar has mentioned NSE determined to promote its whole holding within the firm after capital markets watchdog Securities and Exchange Board of India (Sebi) directing the highest fairness bourse to pare its holding within the firm.

* The shares of CAMS are proposed to be listed on each BSE and NSE. Link Intime India Pvt Ltd is the CAMS IPO’s registrar. The situation is being managed by Kotak Mahindra Capital Co Ltd, HDFC Bank Ltd, ICICI Securities Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd.

* The CAMS IPO consists of a suggestion on the market of 1,82,46,600 fairness shares the place NSE Investments, a subsidiary of National Stock Exchange, might be promoting its shares. All the cash raised will go to NSE Investments and the corporate is not going to get any cash from this provide.

* Half of the problem is reserved for certified institutional patrons, 35% to retail traders, 15% to non-institutional bidders and there’s a reservation of 1.82 lakh shares for workers, who will get the shares at a 10% low cost.

* The lot measurement of CAMS IPO is 12 or traders have to use for no less than 12 shares and in multiples thereof. According to brokerages, the share allocation is more likely to be finalised on 28 September whereas the itemizing is more likely to occur on October 1.

* Minimum utility for retail at higher value band for one lot is Rs 14,760. A retail investor can apply for a most 13 tons.

* CAMS is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group. The whole quantum of shares being bought to traders in CAMS IPO is NSE’s 37.4% holding or 1.82 crore shares.

* CAMS, India’s largest registrar and switch agent (RTA) of mutual funds, has an combination market share of round 70% based mostly on mutual fund AUM managed.

* CAMS had posted a 1% rise in whole revenue in FY20 at Rs 721 crore because the expense ratios acquired compressed. It made up for it by an growth in working revenue margins to 37%, which resulted within the revenue after tax rising 25% to Rs 173 crore.

(With company inputs)