NSE-backed CAMS files papers with Sebi for Rs 1,500-1,600-crore IPO

Computer Age Management Services (CAMS), which is backed by Warburg Pincus and the NSE, has filed draft papers with markets regulator Sebi to float an initial public offering worth Rs 1,500-1,600 crore. The IPO will see sale of 1,21,64,400 equity shares through offer- for-sale by Great Terrain Investment, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, according to 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. Market sources estimate the IPO size to be anywhere between Rs 1,500-1,600 crore. 

The issue is being managed by Kotak Mahindra Capital Company, HDFC Bank, ICICI Securities and Nomura Financial Advisory and Securities (India) Pvt Ltd. CAMS claims to be the country’s largest registrar and transfer agent (RTA) with a market share of 69.4 per cent, based on mutual fund average assets under management (AAUM), as of November 2019. During the period, it served Rs 18.7 lakh crore of AAUM of 16 mutual fund clients.

It offers integrated services for receipt, verification and processing of financial and non-financial transactions for the BFSI sector, largely to the mutual fund industry. Also, it 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 papers, CAMS’ total income and profit after tax for 2018-19 stood at Rs 711.49 crore and Rs 130.89 crore, respectively. Going forward, CAMS seeks to maintain its leadership position by deepening its technology integration and improving its value delivery, in addition to its focus on growing its business across insurance, electronic payment collection, Alternative Investment Funds, KYC registration and software solutions.