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CAMS to launch IPO on September 21; NSE to divest over 37% via public offer

The offer for sale indicated that the NSE Investments is going to offload its almost entire stake in CAMS via IPO.

September 15, 2020 / 07:57 PM IST

Computer Age Management Services (CAMS), the largest registrar and transfer agent of mutual funds, will open its initial public offering on September 21, according to the RHP. The anchor investors' book will open for a day on September 18.

The maiden public issue consists of an offer for sale of 1,82,46,600 equity shares by NSE Investments. The offer also includes a reservation of 1,82,500 equity shares for eligible employees.

Moneycontrol had first reported about the company's IPO plans for 2020 on August 14, 2019.

The public offer, which would constitute at least 37.40 percent of post-offer paid-up equity capital of the company, will close on September 23.

The offer for sale indicated that the NSE Investments is going to offload its entire stake in CAMS via IPO.

In compliance with the requirements of the Sebi Letter, NSE intends to divest its entire shareholding, held through NSE Investments, in CAMS by way of sale and transfer of (i) 1,82,46,600 equity shares pursuant to the offer; and (ii) the balance 38,400 Equity Shares pursuant to the NSE Investments SPA (share purchase agreement), as per its red herring prospectus filed with Sebi on September 11.

NSEIL (the subsidiary of National Stock Exchange) held 37.48 percent stake in CAMS, HDFC 5.99 percent, HDFC Bank 3.33 percent, HDFC Trust 3.19 percent, Faering Capital India 4 percent and Acsys 1.94 percent, as per the draft red herring prospectus filed with the Sebi in January 2020.

Great Terrain, the wholly owned by Harmony River Investment, is the promoter of CAMS with 43.53 percent shareholding. Harmony River Investment is owned by private equity funds managed by US-based Warburg Pincus.

Great Terrain has, pursuant to the Great Terrain SPAs, agreed to sell and transfer 61,08,400 equity shares, prior to the bid/offer opening date. After such transfer, Great Terrain will hold 1,51,15,600 equity shares, i.e. 30.98 percent of the pre-offer and post-offer paid-up capital.

These shares will be transferred by NSE Investments (38,400 shares) and Great Terrain (61,08,400 shares) at Rs 1,230 per equity share, to insurance companies and mutual funds, as per the RHP.

According to people familiar with the IPO development, the higher end of IPO price band could be Rs 1,250 per share and the issue size approximately Rs 2,258 crore, while one can bid for minimum 12 equity shares and in multiples of 12 equity shares thereafter.

Chennai-headquartered CAMS is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with over two decades of experience. The company is India's largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70 percent based on mutual fund average assets under management (AAUM) managed by its clients and serviced by them during July 2020.

This would be fifth IPO after Rossari Biotech, Mindspace Business Parks REIT, Happiest Minds Technologies and Route Mobile, to be launched in 2020. Chemcon Speciality Chemicals could also launch its initial public offering on September 21, sources told Moneycontrol.

Equity shares are proposed to be listed on the BSE.

Kotak Mahindra Capital Company, HDFC Bank, ICICI Securities and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue. Link Intime India is the registrar to the issue.

Moneycontrol News
first published: Sep 15, 2020 02:23 pm