IPO Details
Below are key details about the IPO of the Company
- IPO Start Date – 9th Sep 2020
- IPO End Date – 11th Sep 2020
- IPO Price – INR 1229.00-1230.00
- IPO Lot Size – 12
- Minimum investment required – INR 14,760
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Business Details
Computer Age Management Services in short CAMS is regulated by SEBI and is co-owned by
- NSE investments
- Warburg Pincus (Global private enquity fund)
- Faering Capital (private equity fund)
- Acsys invetment private limited
- HDFC Group
The Company provides financial infrastructure and services to Financial Institutes. It acts as a mutual find transfer agency. This is the main business of the Company.
It has 70% approx market share as of now which shows the complete monopoly it has on Mutual Fund industry of India.
Below are some key services offered by the Company based on the type of Customer Groups
- Services for Business
- Mutual Fund – Transfer agency operations, Investors services
- Reconciliation processing and exception handling
- Loan against mutual funds
- Payment collection and processing
- Investor on-boarding and fund accounting
- Aggregate and share financial information
- Processing capabilities for policy life cycle services
- Services for Distributors and RIA
- Investor On-boarding and Mutual Fund transactions
- AMFI services
- Support and Queries resolution from different platforms
- Services for Investors
- Nice interface to Invest and manage SIP
- Different types of statements
Below are Group Companies of CAMS
- CAMS KRA
- KYC maintenance of investors by wholly owned subsidiary called CAMS investor services private limited
- CAMSRep
- CAMS insurance repository services acts as Insurance repository and service provider
- Sterling Software
- Software solutions business
- CAMS Finserv
- Account aggregator platform licensed by RBI
Financial Snapshot
Below are key financials of the Company for year ending 2020
- Total Income – 7213.43
- Profit for year – 1734.56
IPO Subscription Status
Below is IPO Subscription status of the Company. I will be updating this section with time.
- QIB – 38.85 times
- NII – 83.37 times
- RII – 4.69 times
- Employee – .61 times
- Total Subscription is 30.87 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
Computer Age Management Services has complete Monopoly as Mutual Fund transfer agent with close to 70% market share. The Company is also backed by prestigious groups like HDFC and NSE.
With commanding position in Mutual Funds transfer agent there is less scope of growth in terms of market share. So it has to focus on other services as well along with Mutual Funds.
It will be interesting to see how well the Qualified Institutional Investors have received the Company IPO. That would show their confidence in company generating alternate source of funds along with monopoly business it has.