Chemcon IPO subscribed 149 times, CAMS 47 times as offers conclude

The initial public offering (IPO) of both  Computer Age Management Services (CAMS) and Chemcon  Speciality Chemicals received strong investor response on Wednesday, the concluding day of the IPOs. CAMS was subscribed 47 times and Chemcon 149 times.

The wealthy investor portion of CAMS was subscribed 112 times, the institutional portion 73 times, and the portion reserved for retail investors was subscribed five times. CAMS had allotted shares worth Rs 666 crore on Saturday to 35 anchor investors, including Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs India, and the Government of Singapore.

CAMS provides financial infrastructure and services to mutual funds (MFs) and other financial institutions and is India's largest registrar and transfer agent (RTA) of MFs. The company enjoys a 70-per cent market share in MF services in terms of average assets under management(AAUM). Many analysts had recommended the stock, citing the company’s dominant position in the RTA market, debt-free status, and the track record of the management. However, analysts warned that growth might be muted in the short term because of Covid-related disruptions. The firm’s top line declined 15 per cent on a year-on-year  (YoY)  basis in the quarter ended June 2020, to Rs 148.6 crore. However, its bottom line was up 1.7 per cent YoY to Rs  40.8 crore.

Chemcon’s high net worth individual portion was subscribed 450 times, its institutional portion was subscribed 113 times, and retail was subscribed 40 times. The firm is a manufacturer of specialised chemical products, and its product portfolio includes oilfield chemicals and  pharma intermediates. The Rs 318-crore IPO comprised of a fresh issue of Rs 165 crore and an offer for sale (OFS) of Rs 153 crore. The company allotted Rs 95 crore for 13 anchor investors on Friday.