Chennai-based Computer Age Management Services (CAMS), a technology-driven firm that provides financial infrastructure and services to the mutual fund industry, has filed its draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of ₹1,500 crore.
The share sale comprises an offer for sale (OFS) of 12,164,400 shares by private equity firm Warburg Pincus, NSE, Acsys Investments, HDFC, and HDB Employees Welfare Trust.
Warburg Pincus, with a stake of 43.5%, is the largest shareholder in the company, followed by NSE Investments that owns 37.5%, while HDFC holds 5.9%. HDB Employees Welfare Trust holds 3.19%, while Acys holds 1.94%.
Half of the total share sale has been allocated for qualified institutional buyers, 15% for non-institutional buyers, and the remaining 35% for retail investors. The issue also includes an eligible employee reservation of up to 1.5% of the post-offer paid-up share capital.
The bankers to the offer are Kotak Mahindra Capital, HDFC Bank, ICICI Securities, and Nomura Financial Advisory and Securities (India).
The assets under management of equity mutual funds that buy services from CAMS increased to ₹6,64,300 crore in March 2019 from ₹2,18,000 crore four years ago. CAM’s total income was ₹711.50 crore, and profit after tax stood at ₹130.90 crore in FY19.