About the Company:
Computer Age Management Services Limited is a financial services and infrastructure provider. Over the years, the company has grown tremendously and is currently the country’s largest registrar and transfer agent (RTA) of mutual funds, commanding an impressive market share of around 69.4% of the mutual fund market.
CAMS currently provides technology-based services including dividend processing, transaction origination interface, payment, transaction execution, dividend processing, intermediary empanelment, report generation, investor interface, settlement and reconciliation, compliance-related services, and brokerage computation.
The company provides services in the area of electronic payment collections services business, insurance services business, alternative investment funds services business, banking, and non- banking services business, KYC registration agency business, and software solutions business.
Computer Age Management Services has a wide network comprising 25 states, 278 service centers, and five union territories. It offers services online through a mobile application
Strength of the company:
- Largest Infrastructure and Services Provider in a Large and Growing Mutual Funds Market
- Integrated Business Model and Longstanding Client Relationships in our Mutual Funds Services Business
- Experienced Management and Board and Marquee Shareholders
- Strong Focus on Processes and Risk Management
- Scalable Technology Enabled Ecosystem
Strategy of the company:
- Maintain our Leadership Position by enhancing Service Offerings to Mutual Fund Clients
- Continue the Technology-led Services Innovations
- Achieve Leadership in Individual Businesses
- Improve Automation in our Businesses
CAMS Business Verticals:
Company Promoter: Great Terrain Investment Ltd is the promoter of the company.
OBJECTS OF THE OFFER: The objects of the Offer are to
- to carry out the Offer for Sale of up to 12,164,400 Equity Shares by the Selling Shareholders; and
- (ii) achieve the benefits of listing the Equity Shares on the BSE. Our Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.
Computer Age Management Services IPO Details:
Computer Age Management Services is looking to raise between Rs 1500-Rs 1600 crores which would value the company at Rs 6000 crores. The entire IPO is an offer for sale by existing shareholders where up to 4,144,600 Equity Shares are offered for sale by Great Terrain, up to 6,099,876 Equity Shares by NSEIL, up to 944,724 Equity Shares by Acsys, up to 487,600 Equity Shares by HDFC and up to 487,600 Equity Shares by HDB Trust.
CAMS share price band:
The CAMS share price band of the IPO has not been announced as of yet.
CAMS IPO listing:
The Computer Age Management Services IPO is proposed to be listed on the Bombay Stock Exchange (BSE). The company has received an in-principle approval from the concerned stock exchange in this regard.
Financial of the company:
Revenue of the company: Revenue of the company is growing . It was 5026.38 Cr in the year 2017, 6614.52 Cr in the year of 2018, 7114.96 Cr in the year 2019 and 3600.29Cr. in the September quarter.
PAT of the company: Company is maintaining good profit margin. There was some dip in profit margin in the year 2019.
Reason of fall: Financial Year 2019 compared to the Financial Year 2018 Our results of operations for the financial year 2019 were particularly affected by the following factors:
· there was an increase in the AAUM serviced for our mutual fund clients to ₹15,841,202 million for the financial year 2019 from ₹13,758,523 million for the financial year 2018, which was partially offset by a decrease in the fees that we charged our clients;
· a onetime payout made to our employees and center heads; and
– There is a reduction in transaction-based revenue generated from mutual fund service business and services due to prevailing economic and market conditions
EPS of the company:
Assets of the company: Company is buying assets continuously and enhancing their business.
Internal Risk Factors:
- Company future revenue and profit are largely dependent on the growth, value and composition of AAUM of the mutual funds managed by our clients, which may decline
- Significant disruptions in our information technology systems or breaches of data security could adversely affect our business and reputation.
- Company’s clients are subject to several laws and regulations, and new laws or regulations or changes to existing laws or regulations could affect our clients and, in turn, adversely affect our business and results of operations.
- Company derive a significant portion of our revenues from a few clients and the loss of one or more such clients could adversely affect our business and prospects.
- Employee fraud or misconduct could harm us by impairing our ability to attract and retain clients and subject us to significant legal liability and reputation harm.
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