CAMS IPO - Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

"Computer Age Management Services (CAMS), a financial services and infrastructure provider, is set to launch its initial public offering (IPO) on September 21, 2020. The IPO will open on September 21 and close on September 23. 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 charge 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. Great Terrain is an affiliate of Warburg Pincus holds 43.8%, NSE Investment Hods 37.7%. However, through IPO NSE investment is selling an entire stake. HDFC group holds 12.6%. CAMS business model is asset-light, Hence, earnings are generously distributed among shareholders. It reports RoE of more than 25%. Considering a healthy balance sheet, high return ratio, and market leadership position, IPO will see strong interest across market participants."

Source : Equity Bulls

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