The newest entrant in the IPO season is Computer Age Management Services (CAMS). CAMS is a registrar and transfer agent. It is co-owned by NSE Investments Ltd., which is a subsidiary of National Stock Exchange, Faering Capital- an Indian private equity firm, HDFC Group, Warburg Pincus- a global private equity firm.
CAMS claims to be the largest RTA in India with almost 70% market share based on the mutual fund industry assets under management (AUM).
The initial public offering (IPO) of CAMS is set to hit the floor on September 21. The issue was open for the anchor book portion on September 18. The Rs 2,242 crore IPO issue will be an offer for sale (OFS) of 1.82 crore shares. This makes up for 37.4% stake held by NSE Investments. NSE is offloading its stake in CAMS after receiving a directive from Sebi in February this year. The IPO is listing on BSE only.
RTAs aid asset management companies in record maintenance. They also provide services to mutual fund investors as a single-window reference point for all their mutual fund investment-related information.
IPO Day 1
The IPO was subscribed 82% on Day 1 of subscription. It received bids for 1.05 crore shares as against the issue size of 1.28 crore shares (this excludes the anchor book portion).
How to Apply For CAMS IPO?
Interested investors can apply for the CAMS IPO via the ASBA facility available on the online net banking facility. Almost all banks in India have this facility.
Want a simpler way? You can apply for CAMS IPO on Groww web easily. Go to IPO ( login to your account). There you would be able to see the list of all open IPOs. Select CAMS IPO and click on ‘Apply’.
Read More: Steps to Invest in IPO on Groww
What is CAMS?
Incorporated in 1988, CAMS provides services to both mutual fund companies and investors. It provides services for verification, processing and receipt of non-financial and financial transactions for the BFSI sector, more prominently for the mutual fund industry. It also provides services to investors like consolidated account statement (CAS) generation, changing mandate and more.
The company is currently headquartered in Chennai. Few of its subsidiaries include:
- CAMS KRA
- CAMS Insurance Repository Services Ltd.
- Sterling Software Pvt. Ltd.
- CAMS Financial Information Services Pvt. Ltd.
|IPO Subscription Dates||September 21-23|
|Listing Date||On or about October 1, 2020|
|IPO Price Band||Rs 1,229-1,230 per share|
|Number of shares on offer||1,82,46,600|
|Face Value||Rs 10 per share|
|Minimum Bid Quantity||12|
|Leading Book Managers of the Issue||1) Kotak Mahindra Capital Company Ltd.
2) HDFC Bank Ltd.
3) ICICI Securities Ltd.
4) Nomura Financial Advisory and Securities (India) Private Ltd.
Share Portions Reserved For Different Investor Categories
There are different kinds of investors: retail, institutional, non-institutional who can participate in the IPO. There is some portion reserved for the employees as well.
|Employee Reserve Portion||Up to 182,500 Equity Shares|
|Anchor Investor Portion||Up to 5,419,230 Equity Shares|
|Net QIB Portion||3,612,820 Equity Shares|
|Of the net QIB Portion: Mutual Fund Portion||Up to 1,806,410 Equity Shares|
|Non-institutional Portion||Not less than 2,709,615 Equity Shares|
|Retail Portion||Not less than 6,322,435 Equity Shares|
|Equity Shares outstanding prior to and after the IPO||48,786,800 Equity Shares|
What is an RTA?
RTA’s aid asset management companies in record maintenance. They also provide services to mutual fund investors as a single-window reference point for all their mutual fund investment-related information.
On A Final Note
Do remember that applying for an IPO bid does not guarantee you the share allotment in a company’s IPO. Once you place a bid, the amount you applied for gets blocked from your account. This means that you cannot use that money anywhere else. If you get the allotment, the money is deducted from your account or else the amount is unblocked.
Another important thing to keep in mind is that all the details you mention in your IPO application should be correct. You do have the option to modify any incorrect details in your IPO application albeit only in the subscription period. In case you are unable to rectify such incorrect details after the bidding process is completed, your IPO application may be rejected. Cancellation of an IPO application is also allowed but only before the last date of IPO bidding.
Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.