The Rs 2,244 crore IPO, which does not consist of a fresh issue but only an Offer For Sale (OFS) of existing shares by NSE Investment, which is selling all of its 37.48% stake.
The CAMS IPO is offering 1.82 crore equity shares or 37.4 per cent stake by NSE Investments, the subsidiary of National Stock Exchange (NSE).
Computer Age Management Services (CAMS) Initial Public Offering saw a rousing response from investors, subscribing the issue 103% on day two of the offer. Retail investors, who had fully subscribed their quota on day one, have so far bid for the issue 1.79 times.Non-Institutional Investors (NII) have subscribed to 35% of their quota of the issue while Qualified Institutional Buyers (QIB) have bid for 25% of their portion. The IPO has 1.82 crore equity shares on offer.
The Rs 2,244 crore IPO, which does not consist of a fresh issue but only an Offer For Sale (OFS) of existing shares by NSE Investment, which is selling all of its 37.48% stake. The issue will remain open for subscription till Wednesday at a price band of Rs 1,229-Rs 1,230 per share. Investors can bid for shares in a bid lot of 12 equity shares. The issue has 90 lakh shares reserved for Qualified Institutional Buyers (QIB), 27 lakh shares for Non-Institutional Investors (NII), 63 lakh shares for Retail investors, and 1.82 lakh shares for Employees.
CAMS, a registrar & transfer agency (RTA) service provider, is a strong player in the same with 70% of the market share. So far, marquee financial institutions have lined up to take a stake in the firm, through anchor investment or the pre-IPO deal where the promoter Great Terrain Investments sold 12.5% of its stake. Some of the names that have so far piled up equity shares of the company include, HSBC, Abu Dhabi Investment Authority, Fidelity Investment Trust, Goldman Sachs, Govt. of Singapore, SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, SBI Life, IIFL AIF, and Acacia Partners, among others.
“In terms of the valuations, on the higher price band, if we annualize Q1FY21 EPS and attribute it on fully diluted equity post IPO, then asking price is at a P/E of around 36.7x,” said Ashika Institutional Equities in a note while advising investors to subscribe to the issue. Brokerage and research firm Motilal Oswal, Yes Securities, Motilal Oswal, and Geojit Financial Services all have a subscribe rating on the IPO.