Computer Age Management Services (CAMS), the largest registrar and transfer agent of mutual funds in India, traded at more than 30 percent premium in the grey market, ahead of listing later this week.
Shares were available with a premium of Rs 370-385 per share in the grey market, people familiar with the development told Moneycontrol, which increased from Rs 280-290 per share last Friday.
That means the trading price was at Rs 1,600-1,615 per share against the final issue price of Rs 1,230 per share.
CAMS is going to list its equity shares on October 1 after the IPO saw 47 times subscription during September 21-23.
CAMS IPO: Allotment status finalised, here's how to check
The initial public offering comprised an entire offer for sale of over 1.8 crore equity shares by NSE Investments, the subsidiary of National Stock Exchange. Hence all the money of Rs 2,244 crore raised from the IPO will go to selling shareholder. In fact, the Sebi had directed NSE Investments to divest its entire shareholding of around 37.50 percent in the company.
All brokerages had advised subscribing the issue given the strong financials, strong market share in the segment and asset-light business model.
Check Chemcon Speciality Chemicals IPO allotment status in four simple steps
"We are optimistic on CAMS's growth story considering its leading position and if we presume mutual fund AUM is expected to grow by 16-18 percent CAGR for next 5-6 years, then CAMS is well placed to tap the business growth in the same tandem. Hence we believe investors should tap this opportunity and hold for a Multibagger story for 2-3 years," Prashanth Tapse, AVP Research at Mehta Equities told Moneycontrol.
CAMS is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with over 2 decades of experience. It is India's largest registrar and transfer agent of mutual funds with an aggregate market share of 70 percent based on mutual fund average assets under management (AAUM) managed by its clients and serviced by them during November 2019.
Company offers an integrated and customized portfolio of services through its pan-India physical network comprising 271 service centres spread over 25 states and 5 union territories as of June 2020, and which are supported by call centres in 4 major cities, 4 back offices.
CAMS' mutual fund clients include 4 of the 5 largest mutual funds as well as 9 of the 15 largest mutual funds based on AAUM during July 2020.