CAMS
Mainboard₹2,243 Cr issue
+23.41%
Listing gain over issue price
Issue size
₹2,243 Cr
1 lot at cut-off
₹14,760
Lot size
12shares
Open
21 Sep 2020
Close
23 Sep 2020
Allotment
28 Sep 2020
Listing
01 Oct 2020
Listing performance
Issue price
₹1,230
Listed at
₹1,518
Listing-day close
₹1,401.60
Latest price
—
Listing gain
+23.41%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Sep 2020 – 23 Sep 2020
- Listing date
- 01 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹1,230 per share
- Lot size
- 12 shares
- Total issue size
- ₹2,243 Cr
- ISIN
- INE596I01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- HDFC Bank Ltd.
- Registered office
- New No. 10, Old No. 178, M.G.R. Salai, Nungambakkam, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 54,19,230 | — | — |
Application size
Minimum 12 shares per lot, in multiples, at ₹1,230
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 12 | ₹14,760 |
| Retail (max) | 13 | 156 | ₹1,91,880 |
| S-HNI (min) | 14 | 168 | ₹2,06,640 |
| S-HNI (max) | 67 | 804 | ₹9,88,920 |
| B-HNI (min) | 68 | 816 | ₹10,03,680 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
54,19,230
Anchor portion
₹667 Cr
at ₹1,230 per share
Valuation and performance
Valuation at offer price
₹1,230 per share
| Metric | Pre-issue | Post-issue |
|---|
About CAMS
Computer Age Management Services Limited (CAMS) is India's largest registrar and transfer agent for mutual funds with approximately 70% market share based on mutual fund AAUM managed by clients as of July 2020. The company provides technology-driven financial infrastructure and services to mutual funds (including four of the five largest and nine of the 15 largest mutual funds), alternative investment funds, insurance companies, banks, and NBFCs. Founded in 1988 and incorporated as a private company, it became a public limited company in 2019. The company operates through multiple business segments including mutual fund services, electronic payment collection services, insurance services, alternative investment fund services, banking and non-banking services, KYC registration agency services, and software solutions. Revenue is primarily derived from fees charged on a basis-points basis of assets under management (AAUM) of funds serviced, with mutual fund services accounting for 86.9% to 89.7% of revenue from operations across recent periods.
Company Analysis
from RHPIndia's largest mutual fund registrar and transfer agent with ~70% market share, also providing technology-based financial infrastructure services across mutual funds, alternative investment funds, insurance, banking, and software solutions.
Computer Age Management Services Limited (CAMS) is India's largest registrar and transfer agent for mutual funds with approximately 70% market share based on mutual fund AAUM managed by clients as of July 2020. The company provides technology-driven financial infrastructure and services to mutual funds (including four of the five largest and nine of the 15 largest mutual funds), alternative investment funds, insurance companies, banks, and NBFCs. Founded in 1988 and incorporated as a private company, it became a public limited company in 2019. The company operates through multiple business segments including mutual fund services, electronic payment collection services, insurance services, alternative investment fund services, banking and non-banking services, KYC registration agency services, and software solutions. Revenue is primarily derived from fees charged on a basis-points basis of assets under management (AAUM) of funds serviced, with mutual fund services accounting for 86.9% to 89.7% of revenue from operations across recent periods.
Mutual Fund ServicesAlternative Investment Fund ServicesInsurance Repository ServicesElectronic Payment Collection ServicesBanking and Non-Banking ServicesKYC Registration Agency ServicesSoftware Solutions
Objects of the Issue
- Offer for Sale of Equity Shares by the Selling Shareholder ₹22,421.05 million p.13
- Achieve the benefits of listing the Equity Shares on the BSE p.13
- Offer for Sale of 18,246,600 Equity Shares by the Selling Shareholder and to achieve the benefits of listing the Equity Shares on the BSE p.74
- Offer for Sale by Selling Shareholder (NSE Investments); no fresh capital being raised by the Company p.277
Issue Structure
- Total Issue
- ₹22,421.05 million (18,246,600 Equity Shares at ₹1,230 per share)
- Offer for Sale
- 18,246,600 Equity Shares by NSE Investments Limited (Selling Shareholder) for ₹22,421.05 million
- Price Band
- ₹1,229 to ₹1,230 per Equity Share (Floor Price ₹1,229; Cap Price ₹1,230)
- Lot Size
- 12 Equity Shares and in multiples of 12 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
CAMS earns revenue primarily through fees calculated on basis points of AAUM managed by mutual fund clients, with different fee structures for different asset classes (higher fees for equity funds than debt funds). The company also generates revenue from transaction-based services, electronic payment collection services, insurance repository services, KYC registration agency services, and software solutions provided to financial institutions.
Business Segments
Registrar and transfer agent services for mutual funds including 16 mutual fund clients with over 71.8 million accounts as of June 30, 2020
Provides registrar and transfer agent services to mutual funds, including transaction origination, operations, investor services, risk management, and compliance services through technology-enabled platforms and a pan-India physical network
Manages end-to-end automated clearing house transactions and electronic clearance services through CAMSPay platform for mutual funds, non-banking financial companies and insurance companies
Conducts insurance repository services through subsidiary CAMS Insurance Repository Services Limited, holding e-insurance policies and assisting insurance companies with agent management, new business processing, and policy servicing
Provides services to investors including fund accounting, record management, reporting, data processing, intermediary revenue management, and document management for alternative investment funds
Offers customer interface services and back-office processing services to banks and NBFCs including loan processing and disbursement
One of five entities granted KRA license by SEBI; maintains KYC records of investors on behalf of capital market intermediaries registered with SEBI
Develops and maintains technology solutions for mutual fund clients through subsidiary SSPL, including Investrak.NET platform, website design, mobility solutions, and business intelligence services
Transfer agency services to mutual funds serving over 69% of assets of the Indian mutual fund industry
Insurance repository services licensed by IRDAI helping policy holders keep insurance policies in electronic form; business solution partner for insurers
KYC document processing and storage using technology, with interface capabilities for intermediaries and other KYC Registration Agencies
Account Aggregator services business with in-principle approval received
Software products and services for mutual funds and other industries with specialty in mutual fund sector
Registrar and transfer agent services for mutual funds, data processing, customer care services, electronic payment collection services, insurance services, alternative investment fund services, banking and non-banking services, and KYC registration agency business
Software development, software solutions and support services for mutual fund companies and external clients
Maintaining share registers, processing share transfers and transmissions, issuing share certificates, and handling investor services
Facilitating dematerialization and rematerialization of securities, maintaining depository accounts with NSDL and CDSL
Record keeping services for mutual funds and other financial instruments through subsidiary CISPL
Providing insurance repository services through subsidiary CIRSL
Acting as a Point of Presence (POP) to transact in pension schemes and distribute NPS services
SWOT Analysis
Strengths
- • India's largest mutual fund registrar with ~70% market share(p.13)
- • Major client base including top mutual funds(p.13)
- • Large scale with 16 mutual fund clients managing over 71.8 million accounts(p.13)
- • Technology-driven infrastructure across multiple business verticals(p.25)
- • Strong financial performance with growing net worth and profitability(p.31)
- • Largest infrastructure and services provider in mutual fund registrar and transfer agent services(p.76)
- • Integrated business model with longstanding client relationships in mutual fund services(p.76)
- • Scalable technology-enabled ecosystem(p.76)
- • Strong focus on processes and risk management(p.76)
- • Experienced management and board with marquee shareholders(p.76)
- • Largest MF RTA with 70% market share and 4+ of top 5 AMC clients(p.105)
- • Fastest growing MF RTA with 18.6% CAGR in AUM (FY2015-2020)(p.100)
- • Strong track record of established client relationships averaging 18+ years(p.106)
- • High switching costs and deep integration lock-in with clients(p.106)
- • Scalable technology platform handling 328+ million transactions annually(p.107)
- • Extensive pan-India physical network with 271 service centers across 25 states(p.106)
- • Strong profitability with 23.9% PAT margin and 34.1% RoE(p.99)
- • Largest mutual fund transfer agency with dominant market position(p.174)
- • Integral role in India's financial infrastructure with established reputation(p.174)
- • Diversified ownership with strong institutional shareholders(p.174)
- • Strong profitability with consistent earnings growth(p.169)
Weaknesses
- • Heavy dependence on mutual fund business revenue(p.24)
- • Concentration of revenue in few large clients(p.27)
- • Regulatory compliance risks and past observations from SEBI inspections(p.22)
- • Selling shareholder NSE Investments required to divest entire stake within one year per SEBI directive(p.23)
- • COVID-19 pandemic causing significant business disruption(p.23)
- • Related party transactions with potential conflicts of interest and no assurance of arm's length terms(p.39)
- • Promoter lacks adequate experience and has not actively participated in business activities(p.40)
- • Missing statutory filings and records with RoC creating regulatory risk(p.40)
- • Director's educational qualifications not independently verified(p.40)
- • Dependence on related party transactions with shareholders including lease arrangements(p.39)
- • Dependence on top 4 mutual fund clients for material revenue (top 4 AMCs = ~73% of market)(p.100)
- • Concentrated client base with only 16 mutual fund clients(p.109)
- • Regulatory pressure from TER caps limiting growth and margins(p.99)
- • Ongoing costs for cyber security and data protection infrastructure required by regulations(p.99)
- • Promoter lacks adequate business experience in the company's sector(p.150)
- • High concentration of shares pledged as security by promoter's parent(p.151)
- • Significant lease obligations concentrated in non-current liabilities(p.199)
- • Multiple ongoing litigation cases involving data theft, fraudulent transactions, and employee misconduct creating operational and reputational risk(p.252)
- • NSE subsidiary (group company) subject to multiple SEBI enforcement actions and penalties related to preferential trading access and governance violations(p.253)
- • Significant outstanding income tax demands and disputes with unquantifiable financial impact related to software depreciation and non-compete fee classification(p.255)
- • Regulatory compliance violation by CIRSL subsidiary for inadequate professional indemnity cover and outsourcing breaches as per IRDAI guidelines(p.253)
- • Material income tax demand of ₹68.58 million plus ₹45.61 million interest for assessment year 2017-2018 with ongoing appeal and penalty proceedings(p.256)
Opportunities
- • Expansion beyond mutual funds into alternative investment funds and other financial services(p.31)
- • Growth in account aggregation business with RBI certification(p.33)
- • Emerging payment aggregator and gateway business opportunity(p.33)
- • Secular growth trend in Indian financial services and savings(p.31)
- • Diversification into KYC registration agency services(p.34)
- • Large and growing mutual fund industry with expanding AUM expected to grow to ₹52 trillion by March 2025(p.92)
- • Increasing SIP adoption and retail participation in mutual funds(p.91)
- • Low mutual fund penetration in India presents significant growth potential(p.87)
- • Growing household financial savings and shift toward financial assets(p.85)
- • Increasing financial literacy and urbanization driving capital market participation(p.86)
- • Mutual fund industry expected to grow at 15% CAGR through FY2025(p.97)
- • Rising share of equity funds in mutual fund portfolios (31% to 47% by FY2025)(p.97)
- • AIF sector growing at 30-35% CAGR projected through FY2024(p.101)
- • Low insurance penetration rates provide expansion opportunity for insurance repository business(p.102)
- • Digital adoption and mobile-first investing driving transaction growth(p.97)
- • Potential to enhance service offerings to mutual fund clients for higher value capture(p.108)
- • Expansion into account aggregator business with in-principle approval(p.178)
- • Growing insurance repository services business segment(p.178)
- • Dividend distribution policy with 65% commitment attracting investors(p.161)
- • Expansion of Point of Presence (POP) and new agency registrations under National Pension System and authentication services(p.259)
- • Geographic expansion opportunity with 271 service centres across 25 states and five union territories providing local presence for business growth(p.259)
- • IPO capital raising and listing enabling growth investments and working capital enhancement(p.261)
Threats
- • Revenue highly dependent on AAUM which can decline from market downturns(p.24)
- • Indian equity market volatility impacts client assets(p.25)
- • Regulatory changes affecting mutual fund expense ratios and client fees(p.26)
- • Competition from established and new market entrants(p.32)
- • Potential consolidation in financial services industry reducing client base(p.35)
- • Severe economic contraction from COVID-19 with GDP expected to decline 5% in FY2021(p.81)
- • Mutual fund AUM near-flat growth expected for financial year 2021 due to COVID-19(p.92)
- • Political, economic and geopolitical factors beyond company control including increased India-China tensions(p.41)
- • Regulatory changes and legal uncertainties including GAAR and GST impacts(p.42)
- • Competition from concentrated AMC market where top 5 players control 59% of AUM(p.92)
- • Regulatory changes requiring dynamic system updates and compliance costs(p.99)
- • Declining fee structure for equity and other fund categories over 5 years(p.96)
- • Growth in direct plans reducing reliance on distributor and RTA services(p.98)
- • Mutual fund industry growth expected to be near-flat in FY2021 due to COVID-19(p.106)
- • Competition from existing players with established market position and switching costs(p.94)
- • Regulatory restrictions and ongoing investigations by SEBI affecting major group company NSE(p.156)
- • Dependency on mutual fund industry which is subject to cyclicality and market conditions(p.174)
- • Payment restrictions imposed by SEBI on dividend distribution to group company(p.161)
- • Regulatory uncertainty and changing SEBI requirements for IPO timelines and procedures affecting operational planning(p.275)
- • Foreign investment restrictions and prior approval requirements for entities from countries sharing land border with India(p.292)
- • Volatility in post-IPO stock performance as evidenced by recent IPO trends showing significant discount scenarios(p.268)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Great Terrain Investment Ltd | Promoter | 30.98% | — |
| Great Terrain Investment Limited | Promoter | 30.98% | 30.98% |
| NSE Investments Limited | Selling Shareholder | 37.40% | 0% |
| Acsys | Promoter | — | — |
| NSE Investments | Promoter | — | — |
| HDFC | Promoter | — | — |
| HDFC Bank | Promoter | — | — |
| Great Terrain | Promoter | — | — |
| NSEIL | Promoter | — | — |
| Great Terrain | Promoter | 30.98% | — |
| NSE Investments | Shareholder (Group Company) | — | — |
| HDFC Group | Shareholder | — | — |
| NSE Investments Limited | Shareholder having significant influence | — | — |
| Great Terrain Investment Limited | Parent Company of shareholder | — | — |
| Harmony River Investment Limited | Parent Company of Great Terrain Investment Limited | — | — |
| NSE Investments | Selling Shareholder (Offer for Sale) | — | — |
Leadership
Not stated in this document section · Chairman/MD/CEO
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
CAMS IPO FAQs
What is the lot size of CAMS IPO?
The minimum lot size of CAMS IPO is 12 shares. One lot costs ₹14,760 at the cut-off price.
When does CAMS IPO open and close?
CAMS IPO opened for subscription on 21 Sep 2020 and closed on 23 Sep 2020.
What is the listing date of CAMS IPO?
CAMS IPO listed on 01 Oct 2020.