IPO Overview – Computer Age Management Services LTD (CAMS)

ABOUT THEIR PROFILE

• India’s largest mutual fund registrar with 70% market share
• Mutual fund holding statement generation
• Mutual fund investor folio management
• Dividend processing & daily all types of mutual fund transaction execution
• Brokerage computation & settlements & reconciliation
• Mutual fund transactions report generation

THEIR STRENGTHS

• Largest infrastructure of mutual fund transactions processing
• 100% technology driven services
• Pan-India presence
• Scalable business
• Negligible competition
• Profit making with good revenue growth

ISSUE DETAILS

• Issue Open & Close: Monday 21^st Sept to Wednesday 23^rd Sept
• 100% offer for sale; shares sold by pre-IPO investors
• Issue Size: About Rs.2200 crore
• Retail Portion: 35%
• Price Band: Rs.1229 to Rs.1230 ( Minimum Bid Lot: 12 shares & in multiples)

Retail Lots	No. of Shares	Price Per Share	Application Amount
1 lot (minimum)	12	1230.00	14760.00
2 lots	24	1230.00	29520.00
3 lots	36	1230.00	44280.00
4 lots	48	1230.00	59040.00
5 lots	60	1230.00	73800.00
6 lots	72	1230.00	88560.00
7 lots	84	1230.00	103320.00
8 lots	96	1230.00	118080.00
9 lots	108	1230.00	132840.00
10 lots	120	1230.00	147600.00
11 lots	132	1230.00	162360.00
12 lots	144	1230.00	177120.00
13 lots (maximum)	156	1230.00	191880.00

SHOULD YOU INVEST?

• First such company to go public so first mover advantage
• Return on Equity above 30%
• P/E stands at 36.81, pretty high for comfort and no comparisons due to no peers
• Might find investor fancy due to the type of business and also scalable
• Listing gains would depend on number of times subscription
• Looks good as a long term investing stock with good business prospects and proven management

INVESTING TIP: WATCH THE SUBSCRIPTION LEVELS TILL 12 NOON ON 3^rd DAY (23^rd SEPT) AND THEN DECIDE TO INVEST; IF THE ISSUE HAS OVERSUBSCRIBED BY AT LEAST 10 TIMES, MAYBE WORTH INVESTING. IF MARKET SENTIMENTS REMAIN TO BE BULLISH THE ISSUE MAY WITNESS A BUMPER LISTING

Read More