NSE acquires 45% stake in CAMS

PE firm Advent exits entirely; HDFC, HDFC Bank and Acsys Software India also sell some of their holdings to Strategic Investment Corp

The National Stock Exchange (NSE)’s strategic investment arm has picked up 45 per cent stake in mutual fund back-office service provider Computer Age Management Services (CAMS) Pvt Ltd.

Private equity player Advent International, which had sold its entire stake to NSE. HDFC, HDFC Bank and Acsys Software India Pvt Ltd, has also sold a portion of its stake to the NSE subsidiary.

“To realign the shareholding pattern, the Strategic Investment Corporation of NSE has now entered into agreement to invest in CAMS by acquiring 45 per cent of equity capital of CAMS comprising the entire stake of Advent International, the global private equity partner and a portion of the stake from other shareholders namely HDFC, HDFC Bank and Acsys Software India Pvt Ltd,” said a statement on the exchange website.

Earlier, the BSE had sought to pick up 51 per cent stake in the company, according to news reports. The plan was said to have been stymied by the Securities and Exchange Board of India (Sebi)’s discomfort with an exchange acquiring a majority stake in a market intermediary.  

This issue is not said to have been a problem in the latest acquisition on account of the quantum of the stake being acquired.  A source suggested that Sebi approval is only required for a controlling stake in the company. Since this is not the case with CAMS, regulatory approval is unlikely to be an issue.

A Sebi spokesperson did not reply to the email, seeking his response on the deal.

News reports pegged the valuation for the 51 per cent stake that the BSE was looking to acquire at Rs.650 crore. This would value the 45 per cent stake at Rs.573 crore.

Acsys Software (India) Private Limited and HDFC group will hold the remainder of the 55 per cent stake in the company.  All three shareholders would have board representation, according to the NSE statement.

“There will be no change in CAMS management team and structure and business would continue as usual,” it said.