CAMS IPO Attracts Strong Investor Response On Final Day Of Bidding
The Warburg Pincus-backed mutual fund transfer agency’s offering was subscribed 46.93 times as of 5:00 p.m. on Sept. 23.
The initial public offering of Computer Age Management Services Ltd.—the third this month—was oversubscribed on the final day of its share sale.
The CAMS IPO was subscribed 46.93 times as of 5:00 p.m. on Sept. 23, led by strong demand from both institutional and non-institutional bidders.
According to data by Axis Capital, non-institutional investors subscribed 111.85 times on the shares earmarked for them, while institutional investors bid 73.18 times—a significant increase from the lukewarm response during the first two days of bidding. Retail investors bid 5.44 times and employee bidders subscribed 0.68 times on the shares set aside for them.
The Chennai-headquartered, Warburg Pincus-backed mutual fund transfer agency’s planned to raise Rs 2,242 crore by selling up to 1.82 crore shares in a price band of Rs 1,229-1,230 per share. The minimum bid size is 12 shares and multiples thereof.
CAMS, in its red herring prospectus, stated that the IPO proceeds will go to selling shareholder NSE Investments which will exit the firm soon after.