KRChoksey: CAMS IPO - Investment Rationale

KRChoksey Report

Computer Age Management Services Ltd., promoted by Great Terrain Investment Ltd., is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with more than two decades of experience.

CAMS is India’s largest mutual fund registrar and transfer agent (MF RTA) with a market share of 70% based on MF average assets under management (AAUM) managed by its clients during July 2020.

CAMS counts four of the top-five MFs and nine of the largest 15 MFs as its clients, based on AAUM in July 2020.

CAMS provides an end-to-end suite of service offerings to its clients and has leveraged its domain expertise, processes and infrastructure to diversify its services across newer avenues such as electronic payment collections services, insurance repository, alternate investment funds (AIF), KYC registration agency, software solutions and account aggregator.

Its services to MFs span multiple facets of its relationships with investors, distributors and regulators.

As of July 2020, CAMS serviced Rs 19.2 trillion of AAUM of 16 MF clients. The company’s pan-India physical branch network comprises 271 service centres spread over 25 states and five union territories as of June 30, 2020.

These are supported by call centres in four major cities and four back offices.

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