CAMS surges 16% in two trading sessions, hits highest level since listing

The company was deemed eligible as central record keeping agency under the National Pension Scheme

Shares of Computer Age Management Services (CAMS) rallied 9 per cent to Rs 1,752 on the BSE in the intra-day trade on Monday, surging 16 per cent in the past two trading days, on the back of heavy volumes. The stock was quoting at its highest level since its listing in October 2020.

At 01:43 pm, CAMS was trading 7 per cent higher, as compared to a 0.82-per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped an over four-fold and a combined 1.3 million equity shares had changed hands on the NSE and BSE till the time of writing of this report.

On Wednesday, December 16, 2020, the company had announced that it has received a communication from the Pension Fund Regulatory and Development Authority, New Delhi, stating that the company has been considered eligible for selection and further grant of registration as a Central Record Keeping Agency under the National Pension Scheme (NPS) under the Pension Fund Regulatory and Development Authority (Central Recordkeeping Agency) Regulations, 2015.

The selection is subject to certain fulfillment of certain conditions including the de-registration of the company as a Point of Presence under the Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018.

"The company is in the process of complying with such conditions to obtain the registration as a Central Record Keeping Agency and will provide the updates as and when required," CAMS said in a regulatory filing.

With past two day's rally, the stock of CAMS is trading at a 42 per cent premium compared with the issue price of Rs 1,230 per share on the BSE. The Rs 2,250 crore initial public offering (IPO) of CAMS had received a strong demand with its IPO getting subscribed 47 times.

CAMS is India's largest registrar and transfer agent (RTA) of mutual funds (MF) with a market share of around 70 per cent based on average assets under management (AAUM) managed by their clients as of July 2020. CAMS provides a comprehensive portfolio of technology-based services such as transaction origination interface, transaction execution, payment, settlement, record keeping, brokerage computation, and compliance-related services.