NSE-backed CAMS gets SEBI nod to float IPO

PTI New Delhi | Updated on July 20, 2020

Computer Age Management Services, backed by Warburg Pincus LLC and the National Stock Exchange, has received markets regulator SEBI’s go-ahead to raise an estimated ₹ 1,500-1,600 crore through an initial share sale.

The 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, as per the draft papers filed with Sebi.

While Great Terrain is an affiliate of Warburg Pincus, NSE Investments is a group firm of the National Stock Exchange (NSE).

Computer Age Management Services (CAMS), which had filed draft papers with SEBI in January, obtained its observations on July 17, the latest update with the capital markets watchdog showed.

Last month, the regulator had sought clarification from the lead manager of the public issue.

Market sources estimate the IPO size to be between ₹1,500 crore and ₹1,600 crore.

CAMS, headquartered in Chennai, is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group.

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 per cent, based on mutual funds’ average assets under management, as of November 2019.

During 2018-19, it served ₹18.7 lakh crore of AAUM (average assets under management) of 16 mutual fund clients.

It offers integrated services for receipt, verification and processing of financial and non-financial transactions for the BFSI (banking, financial services and insurance) sector, largely 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’ total income and profit after tax for 2018-19 stood at ₹711.49 crore and ₹130.89 crore, respectively.

Apart from this, Likhitha Infrastructure too has received Sebi’s go-ahead to float an IPO.

Published on July 20, 2020

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