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Computer Age Management Services Ltd (CAMS) IPO

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Computer Age Management Services (CAMS), a financial services and infrastructure provider, has launched its initial public offering (IPO). The IPO has opened on September 21, 2020 and will be open till September 23, 2020.

CAMS is a technology-driven financial infrastructure and services provider to mutual funds. CAMS provides a range of technology-enabled infrastructure to mutual funds and is involved through the life cycle of an account from account creation to processing transactions and redemption of the amount invested. It is India’s largest RTA of mutual funds with an aggregate market share of ~70% based on mutual fund average assets under management managed by clients and serviced by CAMS during July 2020 (as per CRISIL). It services 4 of the 5 largest MF as well as 9 of the 15 largest MFs (July 2020, CRISIL). It has Pan-India physical network comprising 271 service centers spread over 25 states and 5 union territories as on Q1FY21. It has 16 mutual fund clients with an aggregate of over 71.8 million accounts held by such clients as of June 30, 2020. The other services (Source: Company) are Alternative Investment Fund Services, Electronic Payment Collection, Insurance Services, KYC Registration Agency (KRA), Software Solutions and Insurance Services.


Issue Details

The issue is an Offer for Sale of ~1.82 Cr shares aggregating to Rs.2,242 Cr based on the upper price band. The employee reservation is for 182,500 Shares at a discounted price of Rs.122 per share.

Computer Age Management Services Ltd (CAMS) IPO Subscription Details

Company

Computer Age Management Services Ltd

Issue Type

(Book Built Portion)

Issue Size (In ` Crore)

2,242

Lot Size

12 Equity Shares

Open Date

21 Sep

Close Date

23 Sep

Offer Price

Rs. 1,229- 1,230 per equity share

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Financials

Consolidated Rs Cr

FY18

FY19

FY20

1Q FY20

1Q FY21

Revenue

642

694

700

175

149

EBITDA (%)

40.3

35.1

41.1

38.9

34.6

Adj. Dil. EPS (Rs)

29.9

26.7

35.5

8.2

8.4

PE(x)

41.1

46.0

34.6

--

--

ROIC (%)

79.8

79.4

112.7

 

 

Key Points

CAMS offers technology-enabled infrastructure to MFs and is involved in the entire life cycle of an account. The processing services are fully outsourced by the MF industry and is concentrated between two RTAs (CAMS & Karvy). Such services account for ~80% of CAMS’ overall revenues. The relationship with MFs is very sticky owing to high level of integration, cost benefits, data loss risk, etc. Its average relationship with 10 largest clients is ~20 years. Continued financialization of savings, growing investor base and growing AUMs are main growth drivers for CAMS

CAMS business model is highly scalable, has good margin profile and w/c is a non-factor which results in stellar ROE/RoIC. Currently, Cash and investments are ~76% of its net worth. It has strong cash conversion (FY20 OCF/EBITDA of 0.7x and FCFF conversion of ~107%) which enables continuous investments behind technology platforms.

Key Risk Factor:

Although there is limited risk on account of lack of core competency (insourcing) or tedious process, longer integration time and data loss associated with switching RTA, M&A activity at fund level may result in client loss. Larger Bank backed AMC may explore insourcing which can hamper revenues.

How to apply IPO on 5paisa app?

  • Login to your 5paisa Mobile Trading App
  • Click on Trade & select IPO section
  • Select CAMS IPO
  • Enter the number of lots and price
  • Enter your UPI ID and click on submit
  • Your bid will be placed with the exchange
  • You will receive a notification to block funds in your UPI app
  • Approve the block request

Computer Age Management Services Ltd (CAMS) IPO Frequently Asked Questions

When is CAMS IPO Opening?

Computer Age Management Services (CAMS) IPO is opening on September 21, 2020. The issue will be open till September 23, 2020. 

What is the lot size of CAMS IPO?

CAMS IPO lot size is 12 equity shares and the minimum order quantity is 12 equity shares. 

When is CAMS IPO listing date?

CAMS IPO listing date is October 1, 2020.

How to apply for CAMS IPO?

Once the issue is open you can apply in CAMS IPO online using either UPI OR ASBA as payment method. You can apply for CAMS IPO using any UPI ID OR apply using ASBA with netbanking. Read above the process to know how you can apply for CAMS IPO online with 5paisa App.

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Contact Details of Computer Age Management Services Ltd (CAMS) IPO

Company Contact Information

Computer Age Management Services Ltd (CAMS) IPO
New No 10 Old No 178,
M G R Salai, Nungambakkam,
Chennai, Tamil Nadu 600034.

Phone:
Email: g_manikandan@camsonline.com
Website: https://www.camsonline.com/

Computer Age Management Services Ltd (CAMS) IPO Register

Link Intime India Pvt Ltd

Computer Age Management Services Ltd (CAMS) IPO Lead Manager(s)

  • HDFC Bank Ltd
  • ICICI Securities Ltd
  • Kotak Mahindra Capital Company Ltd
  • Nomura Financial Advisory & Securities (I) Pvt Ltd

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