CAMS IPO to be open from September 21- 23, price band Rs 1229- 1230 of Face Value Rs 10

The Computer-Age Management System (Cams) IPO will open on September 21 and close on September 23. The price band is between Rs 1229- 1230.

The Computer-Age Management System (CAMS) IPO will open on September 21 and close on September 23. The price band is between Rs 1229- 1230.

The registrar and transfer agent of mutual funds, provides technological services to companies and fund houses.

The Initial Public Offering (IPO) will involve sale of 1.82 crore shares through offer for sale (OFS). The issue will consist of face value of Rs 10 per equity share. It is looking to raise Rs 1,500 crore from investors.

Jaikishan Parmar, Angel Broking said, “The company is India’s largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70 percent based on mutual fund average assets under management. CAMS charges a percentage of AUM to AMC and charges more fees from equity mutual funds as compared to other categories of mutual funds. Change in the mix of the Mutual fund industry towards higher equity and the buoyant market will be beneficial for CAMS revenue growth. CAMS business model is asset-light, Hence, earnings are generously distributed among shareholders. Considering a healthy balance sheet, high return ratio, and market leadership position, IPO will see strong interest across market participants.”

NSEIL, the subsidiary of National Stock Exchange (NSE) owns 37.48% stake in Cams, which is expected to be divested according to the SEBI’s order last year.

HDFC owns 5.99%, 3.33% by HDFC Bank, and 3.19% by HDFC Trust. Great Terrain, owned by Harmony River Investment, is the promoter of CAMS with 43.53% shareholding.

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