CAMS IPO

CAMS IPO Details

CAMS or Computer Age Management Services is one of the largest service providers to mutual funds and other financial institutions in India, with a savvy technology-driven financial services infrastructure. It is a SEBI regulated entity that is co-owned by NSE Investments, Warburg Pincus, Faering Capital, ACSYS Investments and HDFC Group. CAMS is India’s largest RTA of mutual funds with an aggregate market share of approximately 70% based on mutual fund AAUM managed by its clients and serviced by it during Jul. 2020.

• The total Issue Size is 18.247mn shares (Rs.22,425.1 - Rs. 22,443.3mn).
• With this IPO; CAMS intends to proceed with the OFS (18.247mn shares) and be listed in the National and Bombay Stock Exchange.
• On the direction of SEBI, NSE is fully divesting its stake in the company through this IPO.

CAMS IPO Review/Ratings

Key Competitive Strengths

1. Largest infrastructure and services provider in the large and growing mutual funds market.
2. Integrated business model and longstanding client relationships in the mutual fund’s services business.
3. Scalable technology-enabled ecosystem.
4. Strong focus on processes and risk management.
5. Experienced management & board and marquee shareholders.

Risks and Concerns

1. Subdued economic growth and poor financial investment market.
2. Unfavourable change in the mutual fund AUM composition.
3. Consolidation in the mutual fund industry.
4. A decline in retail SIPs and accelerated withdrawals or redemptions.
5. Unfavourable regulatory environment.
6. Inability to maintain the profitability levels.

Download the CAMS IPO Report

CAMS IPO Fundamental Analysis

• 0.86% growth in revenue from operations; from 6936.44 mn in FY19 to 6996.30 mn in FY20.
• 32.9% increase in net profit; from 1304.5 mn in FY19 to 1734.2 mn in FY20.
• CAMS is India’s largest RTA of mutual funds with an aggregate market share of approximately 70% based on mutual fund AAUM managed by its clients and serviced by it during Jul. 2020.
• Serviced Rs. 19.2tn of AAUM of 16 mutual fund clients, which had 19.77mn SIP accounts (July 2020).
• Over the last five years, based on AAUM serviced, the company has grown its market share from approximately 61% in FY15 to around 70% by FY20.
• Price to Earnings Ratio (P/E) for FY20 = 34.5
• Debt to Equity Ratio (D/E) for FY20 = 0
• Earnings Per Share (EPS) = 35.7
• Return on Equity (ROE) for FY 20 = 33%
• Price to Book Ratio (P/B) = 11.4
• Return on Capital Employed (ROCE) = 33.4%

Online Procedure to Apply For CAMS IPO

1. Go to the IPO Section => IPO Listing => Open IPO.
2. On tapping CAMS IPO, you can directly click on Subscribe to apply or even view the IPO details.
3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
4. Once you select 'Subscribe'. Your bid will be executed.
5. You can check the status of your IPO bid in the IPO Transactions section.