Computer Age Management Services (CAMS), one of India’s largest registrar and transfer agents (RTAs) for mutual funds (MFs), has filed the draft red herring prospectus (DHRP) for an initial public offer (IPO).
The public issue, which is likely to be worth about ₹1,500 crore, is an offer-for-sale from existing shareholders like National Stock Exchange, HDFC, Acsys Investments, along with the promoter entity Great Terrain Investment, that is managed by Warburg Pincus LLC.
As per the draft document filed by the company, CAMS has an aggregate market share of 69.4% based on mutual funds’ average assets under management (AAUM). Its MF client list includes four of the five largest MFs based on AAUM.
The size of the MF RTA business was approximately ₹860 crore in 2018-19 while the industry is estimated to have grown at a CAGR of 20% in the last four years, according to a Crisil report, stated the draft document.
Further, CAMS registered a net profit of ₹82.75 crore in the six months ended September 30, 2019, which was higher than the ₹63.21 crore recorded in the corresponding quarter of the previous financial year.
In FY 2018-19, net profit was pegged at ₹130.9 crore, lower than the previous fiscal’s profit of ₹146.31 crore.
