NSE-Backed CAMS Files Papers With SEBI For Rs 1,500-1,600-Crore IPO

Computer Age Management Services, backed by Warburg Pincus LLC and the National Stock Exchange, has filed draft papers for an initial public offering worth Rs 1,500-1,600 crore.

The CAMS IPO will see sale of 1.22 crore equity shares through offer-for-sale by Great Terrain Investment, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, according to the draft papers filed with markets regulator Securities and Exchange Board of India.

While Great Terrain is an affiliate of Warburg Pincus, NSE Investments is a group firm of the National Stock Exchange. Market sources estimate the IPO size to be anywhere between Rs 1,500 and Rs 1,600 crore.

The issue is being managed by Kotak Mahindra Capital Co. Ltd., HDFC Bank Ltd., ICICI Securities Ltd. and Nomura Financial Advisory and Securities (India) Pvt. Ltd.

CAMS claims to be India’s largest registrar and transfer agent with a market share of 69.4 percent, based on mutual fund average assets under management, as of Nov. 2019. During the period, it served Rs 18.7 lakh crore of AAUM of 16 mutual fund clients.

It offers integrated services for receipt, verification and processing of financial and non-financial transactions for the BFSI sector, largely to the mutual fund industry. It also provides services of transaction, payment, settlement and reconciliation; dividend processing, record keeping, report generation, intermediary empanelment and brokerage computation and compliance.

According to the draft IPO papers, CAMS's total income and profit after tax for 2018-19 stood at Rs 711.49 crore and Rs 130.89 crore, respectively.

Going forward, CAMS seeks to maintain its leadership position by deepening its technology integration and improving its value delivery, in addition to its focus on growing its business across insurance, electronic payment collection, Alternative Investment Funds, KYC registration and software solutions.