The issue received offers for 60,19,36,188 6 shares, which was 46.93 times the size of the issue of 1,28,27,370 shares.
The price band for the issue has been set at Rs 1,229-1,230 and prospective retail investors are required to bid for a minimum of one lot of 12 shares or in multiples thereof.
“In the past 5 years, CAMS has further strengthened its market share from 61% in March 2015 to 70% in July 2020, according to AAUM services. The MF RTA industry is estimated to grow at growth 15% annually during fiscal 20-25E, we believe CAMS may also generate similar growth in the future, “said Nirmal Bang Securities.
The Warburg Pincus-backed company last week raised Rs 666.57 crore from a total of 35 investors at Rs 1,230 per share, ahead of the public issue.
There are 1,82,46,600 shares in the block held by NSE Investments, which will discharge 37.4 percent of the stake, following a directive from Sebi on February 4 to exit the company entirely. The share for retail investors in CAMS IPO has been set at 35 percent of the net offering. The QIB fee is set at 50 percent and the NII fee at 15 percent. There is a reserve of up to 1.82,500 shares for employees.
Motilal Oswal Securities has an underwriting on the subject with a long-term view, believing that CAMS enjoys the advantage of being first-mover, a light asset business model and high barriers to entry.
He noted that the company’s top 5 clients contribute 71% of its revenue, which along with technology disruption and data security and privacy pose risks.
“At the upper end of the price band, the issue is valued at 35 times the price / earnings of fiscal 2020, which appears to be fully discounted. However, we like the company, given its leadership position, business model integrated, presence in all India finance, “he said.
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