CAMS IPO to open on Monday: All you need to know about the issue

NSE Investments would be selling 1,82,46,600 shares through the issue, following a February 4 Sebi directive to NSE to exit the company completely.

Three IPOs to hit D-Street next week: Factors to watch out for
After the success of Happiest Minds and Route Mobile, the Rs 2,242 crore CAMS IPO is all set to hit Dalal Street next week. The anchor allotment for the issue, whose price band has been fixed at Rs 1,229-1,230, will take place on Friday.

Here are the top things you must know about the IPO:

  1. When will CAMS IPO open?
    CAMS IPO will open for subscription on Monday, September 21 and close on Wednesday, September 23.
  2. What is the price band for CAMS IPO?
    The price band for CAMS IPO has been fixed at Rs 1,229-1,230.
  3. What is the lot size for CAMS IPO?
    Investors can subscribe to the initial public offering (IPO) by betting for a lot of 12 shares or in multiples thereof. Retail investors can bid for a maximum of 13 lots. Thus the minimum investment required at the upper end of the price band is Rs 14,760.
  4. What is the issue size of CAMS IPO?
    NSE Investments would be selling 1,82,46,600 shares through the issue, following a February 4 Sebi directive to NSE to exit the company completely.
  5. What is the quota reserved for retail investors in CAMS IPO?
    The quota for retail investors in CAMS IPO is fixed at 35 per cent of the net offer. The QIB quota is fixed at 50 per cent and the NII quota at 15 per cent.
  6. Is there any employee quota in CAMS IPO?
    Yes. There is an employee reservation of up to 1,82,500 shares.
  7. When will CAMS IPO's anchor details be disclosed?
    The details of CAMS's IPO will be out on Friday, September 18. Pritish Kandoi, Executive Vice President at ICICI Securities, said “Institutional investors have perceived the company very well. We are expecting an overwhelming demand from institutional investors in the issue," Kandoi said.
  8. When will the basis of allotment be out?
    The finalisation of the basis of allotment is likely by September 28, Monday and the initialisation of refunds is likely by September 29. Meanwhile, credit of shares in the demat account is likely by September 30.
  9. On what date will CAMS IPO list?
    CAMS listing is likely by October 1. October 2 will be a public holiday.
  10. Who are the listed peers of CAMS?
    CAMS has no listed peer. In the AMC businesses, it can be compared with Sundaram BNP Paribas and more closely with Karvy. The latter handled 22 MF houses with a total AUM of Rs 7.30 lakh crore as of July 2020. As an insurance repository, the company has three peers in India. NSDL Database Management tops in terms of market share, handling 45 per cent of e-insurance policies and 32 per cent of accounts. CAMS Insurance Repository Services comes in second place, with 39 per cent policies and 32 per cent accounts.
  11. Where could we check CAMS IPO allotment?
    Those who would bid for the issue can check the subscription status on : www.linkintime.co.in, the online portal of Link Intime India Private Limited, the registrar to the IPO. The registrar to an issue is a Sebi-registered entity, qualified to act as such, and which electronically processes all applications and carries out the allotment process as per the prospectus.
  12. What is the asking valuation for CAMS IPO?
    The issue is seeking a price-to-book value of 34,61 times FY20 EPS. Jaya Shankar of Kotak, one of the iBankers to the issue, said asset-light business models typically tend to be valued differently. “Investors tend to give a lot of weightage to the fact that the company generates a very high return on equity,” he said.
  13. Who are the leading book managers to the issue?
    Kotak Mahindra Capital, HDFC Bank, ICICI Securities, and Nomura Financial Advisory and Securities are going to be the leading book managers.
  14. What does CAMS stand for?
    CAMS is the abbreviation used for India's largest mutual fund transfer agency Computer Age Management Services.
  15. What does CAMS do?
    Incorporated in 1988, the company is India’s largest registrar and transfer agent of mutual funds today, with an aggregate market share of 70 per cent 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.
  16. What is the revenue breakup for CAMS?
    Overall, revenues from the MF business stood at 86.9 per cent in FY20 while non-MF businesses accounted for 13.1 per cent of the total. The AIF business is somewhat similar to the MF business, Kumar said. Data processing activity accounted for 79 per cent of the company's revenues in FY20. Customer care services added another 8.94 per cent. Margins of 37 per cent in FY20 was higher than 31 per cent in FY19 but equals FY18’s 37 per cent.
  17. Should you invest in CAMS IPO?
    Analysts are largely positive on the issue with a long-term view. YES Securities said the stock will trade at 25.6 times its expected FY22 P/E . While there is no listed peer for CAMS, given the sustainable profit growth, high RoEs and strong free cash low generation, the brokerage finds the valuations reasonable. Choice Broking said the IPO valuation is little stretched. It has assigned a “Subscribe with caution” rating for the issue.
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