So IPO season is starting and various IPO’s are lined up in the coming months , this will be a major IPO and it will be available for subscription from 21st september 2020 , since there are many IPO’s lined up we will be discussing every major IPO in separate article.
What is an IPO ?
Just a quick definition for people who are not aware of what an IPO means , its full form is initial public offering , it’s a way by which a private company asks public to invest in their company, each investor is allotted a tiny ownership of the firm in form of shares or stocks , IPO happen in primary market , after a company has brought their IPO and is listed on the market the traders can trade it’s share or stock in the secondary market.
What is CAMS ?
CAMS is Computer Age Management Service , it’s a mutual fund transfer agency and registrar to indian AMC’s or asset management companies like HDFC Amc , UTI amc etc . CAMS has an impressive market share of almost 70% which makes it a giant in it’s sector , over the last decade it has continuously increased it’s market share, CAMS is headed by Mr.Anuj Kumar and he is the CEO currently , CAMS has a track record of more than 30 years which is also very impressive , it has it’s headquarters situated at chennai , India . Currently Great Terrain Investment ltd is the promoter of CAMS , it has one major competitor in form of Karvy .
CAMS provides services to mutual fund AMCs like transaction processing, redemptions , record keeping,brokerage computation, dividends issuance , it also provides various services to banks and also NBFCs like account opening services , kyc verification , core system of banks, services related to loans in nbfc , record management services and FATCA compliance and reporting. CAMS has two subsidiaries – CAMS repository services ltd and CAMS FinServ .
CAMS Financials –
The Financials of CAMS are more than good and have shown YOY increase in not just revenue but also profits , and this explain why it has market share of almost 70 percent in India .
CAMS IPO details –
IPO Date – It will remain available for subscription from 21 September to 23rd september (Tentatively).
IPO size – Company expects to raise 1500-16 crores from IPO.
IPO type – Offer for sale by promoters and private investors , most of its investors like HDFC group , NSE will be diluting their own stake.
Price band – To be decided.
IPO lot size – To be Decided.
Total IPO shares – 12,164,400
Face value – 10 Rupees.
Allocation of IPO shares – 50 percent allocation to qualified institutional buyers , 15 percent to non institutional investors, 35 percent to retail investors and the rest 15 percent to it’s own employees.
CAMS IPO DRHP – Draft Red Herring Prospectus is available for perusal of investors here .
The big question – should you Invest in CAMS IPO ?
Mutual fund industry is rapidly growing , the need of mutual fund registrar and trasfer agency is growing more each day , CAMS already has 30 years of proven financial records which speak for themselves , CAMS is a goodnbet not just for listing gains but also for long term investment capital gains . ( This is my personal view , you should read DRHP properly and then make your decision ).
How to take part in CAMS IPO ?
Decided to invest in CAMS IPO , want to know what to do next ? If you have your trading and demat with Zerodha simply open the Kite app , go to setting , then in console click on IPO , you will be redirected to the page with active IPO’s and there you can follow the procedure which is straightforward and user-friendly , right now IPO is not open hence it will not show in your console in Zerodha.