NEW DELHI: The initial public offering (IPO) of Computer Age Management Services or CAMS was subscribed 15 per cent on Monday as of 11.19 am. Out of 1,28,27,370 shares on offer, the issue had received applications for 19,98,648 shares.
The retail quota saw the maximum application and was subscribed over 30 per cent. Out of 63,22,435 shares on offer for retail investors, the issue had received applications for 19,52,400 shares.
Quota for non institutional investors or high net-worth investors was subscribed just 0.05 times while the QIB quota had received no applications yet. Employee quota was subscribed 0.01 times.
CAMS plans to raise Rs 2,242 crore from the issue. The price band for the issue has been fixed at Rs 1,229-1,230 and prospective retail investors need to bid for a minimum of one lot of 12 shares or in multiples thereof.
The Warburg Pincus-backed company last week raised Rs 666.57 crore from a total of 35 investors at Rs 1,230 per share ahead of the public issue.
On the block are 1,82,46,600 shares held by NSE Investments, which will offload 37.4 per cent stake, following a 4 Sebi directive to exit the company completely. The quota for retail investors in CAMS IPO has been fixed at 35 per cent of the net offer. QIB quota is fixed at 50 per cent and the NII quota at 15 per cent. There is a reservation of up to 1,82,500 shares for employees.
In the grey market, the shares of the company were trading with a premium of Rs 344 per share, that is, 28 per cent more than the price band set for the IPO.
Brokers are mostly positive on the company’s outlook and advise to subscribe to the issue. Anand Rathi said the issue is priced at 36.7 times FY21 EPS on an annualised basis. While currently there is no listed player for comparison, the brokerage believes the IPO is reasonably priced considering the latest numbers.
“CAMS deals are mainly concentrated between limited players, with the company holding a majority market share of 70 per cent. Also the company has a long existence since 1988 and has an experienced management and marquee shareholders. Since the company has no direct listed peer, the company will enjoy the benefit of a first mover on valuation perspective,” Astha Jain of Hem Securities said.