Mumbai : Computer Age Management Services limited (CAMS) here today highlighted its initial public offering (IPO) of 18,26,600 equity shares priced at between Rs 1229 and Rs 1230 each. The IPO will open on 21 September, 2020 and close on September 23.
Addressing mediapersons via Webinar, Anuj Kumar, CEO, CAMS described CAMS as a ‘zero-debt’, technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with over two decades of experience.
CAMS has handled 328 million transactions, Rs 19.2 trillion MF AAUM serviced, 238 million SIP transactions processed, 19.8 million SIP accounts, and income of Rs 7,213 million and PAT Rs 1,735 million (FY20), besides 37% EITDA margin (FY20) and 32.1% return on Net Worth (FY20).
“We service four of the top five top Mutual Funds in India and handle over 30 crore transactions yearly, besides supporting 1.6 crore investors in the market,” Kumar said, while adding that the IPO had come out in view of factors like: the Mutual Funds industry growing at a healthy rate; increasing investor base, higher disposable incomes, digitalization and projection of MFs as long-term wealth creators.
“CAMS provides a wide range of technology-enabled infrastructure to Mutual Funds and has developed and implemented various technological platforms and technology drivers alongside services integral to clients and operations, besides leveraging its domain expertise, processes and infrastructure to service offerings that cater to a variety of other financial services sectors,” he noted.
Somasundaram, CFO, CAMS, highlighted the business as having “large, sticky revenue, industry with tail winds, healthy profits, asset-light business and healthy dividend funds.”
The Company is India’s largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70% based on mutual fund average assets under management (“AAUM”) managed by its clients and serviced by them during July 2020, according to a CRISIL Report, which also stated that over the last five years, the Company has grown its market share from approximately 61% during March 2015 to approximately 69% during March 2020, based on AAUM serviced.
Computer Age Management Services Limited has filed the IPO’s red herring prospectus dated September 11, 2020 (“RHP”) with the SEBI and the RoC situated at Tamil Nadu at Chennai. The RHP will be available on the website of the SEBI as well as on the websites of the book running lead managers, Kotak Mahindra Capital Company Limited, HDFC Bank Limited, ICICI Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited.
