Warburg Pincus and NSE-backed CAMS files for IPO

Our Bureau Chennai | Updated on January 10, 2020 Published on January 10, 2020

Computer Age Management Services (CAMS) has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India for an initial public offering (IPO).

The IPO will be an offer-for-sale, in which 1,21,64,400 equity shares of face value ₹10 each will be offloaded by the Great Terrain Investment (an affiliate of Warburg Pincus), NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust.

Though the DRHO is silent on the issue size, marketmen expect it to be not less than ₹1,500 crore.

The issue includes eligible employee reservation of up to 1.5 per cent of the post-offer paid-up equity share capital.

The net offer will have a 50 per cent allocation to qualified institutional buyers, 15 per cent to non-institutional investors and 35 per cent to retail individual buyers.

The book running lead managers (BRLMs) to the offer are Kotak Mahindra Capital Company, HDFC Bank, ICICI Securities and Nomura Financial Advisory and Securities (India) Private Limited.

CAMS is one of the largest technology-driven financial infrastructure and services providers to the growing mutual fund industry in the country, with an AAUM of ₹18.7-lakh crore as on November, 2019.

The AUM of equity mutual funds serviced by CAMS grew from ₹21,800 crore as of March 31, 2015 to 6.64-lakh crore as of March 31, 2019, at a CAGR of 32.1 per cent. As of September 30, 2019, the AUM further increased to 6.70-lakh crore.

According to the DRHP, its total income and profit after tax for FY19 stood at ₹711.50 crore and ₹130.90 crore, respectively, its revenues have grown at a CAGR of 19 per cent since 2017.

Published on January 10, 2020
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