CAMS IPO is a good opportunity for long-term investors, say experts

The initial public offering (IPO) of Computer Age Management Services (CAMS) — India’s largest registrar and transfer agent (RTA) of mutual funds (MFs) — is a good opportunity for long-term investors. NSE Investments — a subsidiary of the National Stock Excha­nge — is selling its stake (18.25 million shares) in CAMS through this IPO (opening/closing on September 21/23) at a price band of Rs 1,229-1,230 apiece.

Dominant position in the duopoly RTA market, long-established relationship with top MFs, debt-free status, and good management track-record offer strong comfort. Sneha Poddar, analyst at Motilal Oswal Securities, says: “We recommend ‘subscribe’ for long-term because