CAMS IPO subscribed 82% on day 1, retail investor portion fully subscribed

The initial public offering (IPO) of Computer Age Management Services (CAMS) was subscribed 82 per cent on Monday, the first day of the issue. The portion reserved for retail investors was fully subscribed. However, the institutional investor section was subscribed 25 per cent, the high net worth individual (HNI) portion 30 per cent, and the employee portion 24 per cent.

On Saturday, the firm had allotted shares worth Rs 666 crore to 35 anchor investors. These include Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs India, and the Government of Singapore.

CAMS has priced its IPO in the range of Rs 1,229-1,230 per share. CAMS is a financial infrastructure and services provider to mutual funds (MFs) and other financial institutions.

The company is India’s largest registrar and transfer agent (RTA) of MFs. The company has a network of 271 service centres across 25 states and 5 union territories. It enjoys 70 per cent market share in MF services in terms of average assets under management.

Many analysts had recommended the stock to investors, citing its dominant position in the RTA market, debt-free status, and track record of the management. The company is planning to raise Rs 2,242 crore through its public offering.

The IPO is a pure offer for sale, and the company will not receive any proceeds. However, analysts warned that growth might be muted in the short term owing to Covid-led disruptions.

The company’s top line declined 15 per cent year-on-year (YoY) to Rs 148.6 crore in the June quarter. However, its bottom line rose 1.7 per cent YoY to Rs 40.8 crore. The IPO closes on Wednesday.