Chennai-based Computer Age Management Services (CAMS) initial public offering (IPO) has a fixed price range of ₹1229-1230 per share. The sale of shares will be open for subscription from September 21 to 23.
The IPO will see NSE Investments Limited completely exit its 37.48% stake in CAMS. The other reference shareholders of CAMS are Great Terrain (a subsidiary of Warburg Pincus) which owns 43.50%, HDFC and HDFC Bank which hold 5.99% and 3.33% respectively. The company aims to increase ₹2242 crore through the IPO, the proceeds of which will not be received by CAMS.
“Initial public offering of 18,246,600 participating shares with a par value of ₹10 each of Computer Age Management Services Limited per share, through an offer to sell up to 18,246,600 shares totaling up to by NSE Investments Limited, ”the company said in a press release.
The offer includes a reservation of a maximum of 182,500 participating shares (representing up to 0.37% of the share capital released after the offer) for purchase by eligible employees. The offer and the net offer would constitute respectively at least 37.40% and 37.03% of its share capital released after the offer, ”he said.
CAMS Ltd is a technology-driven financial infrastructure and service provider. It is the largest mutual fund registration and transfer agent in India. The company is the largest mutual fund registrar and transfer agent in India with a total market share of approximately 70% based on average mutual fund assets under management. “The profits are generously distributed among the shareholders. It reports a RoE of over 25%. Considering a healthy balance sheet, high yield ratio and a leading market position, the IPO will generate a lot of interest among market participants, ”said Jaikishan Parmar – Senior Analyst at equity research at Angel Broking Ltd.
Kotak Mahindra Capital Company Limited, HDFC Bank Limited, ICICI Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited are the lead manager (BRLM) of the matter.