The Computer Age Management Services (CAMS) Rs 2,244-crore IPO was subscribed 82.5% on Monday. The Warburg Pincus-backed mutual fund transfer agency is the third public this month.
The IPO received bids for 1.05 crore equity shares against offer size of over 1.28 crore equity shares on its first day. The portion for retail investors saw 1.4 times subscription and the non-institutional investors segment witnessed 29.88% subscription.
CAMS is the largest registrar and transfer agent of mutual funds in India, with a market share of approximately 70 percent based on mutual fund average assets under management (AAUM) during July 2020. It has clients like HDFC Asset Management, ICICI Prudential Asset Management, SBI Fund Management, and Kotak Mahindra Asset Management.
The company has fixed price band at Rs 1,229-1,230 per share for its public issue which will remain opened till September 23.
“The opportunity landscape for the MF business in India is huge, given low penetration and financialisation of household (HH) savings, thus providing long-term visibility. At Rs 1,230 per share (IPO price), CAMS is priced at 35x FY20 EPS, at a 10-15 percent discount to listed AMCs, Exchanges and Depositories. We expect stock to trade in-line with other comparables and further re-rate,” IIFL Securities had stated.
