Markets regulator Sebi has sought clarifications from merchant bankers of the proposed initial public offering of Computer Age Management Services, which filed draft papers in January to raise an estimated Rs 1,500-1,600 crore.
The CAMS’ IPO will sell 1.22 crore equity shares through offer-for-sale by Great Terrain Investment, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, as per the draft papers.
While Great Terrain is an affiliate of Warburg Pincus, NSE Investments is a group firm of the National Stock Exchange.
In an update on June 29, the regulator said it is awaiting response to the clarification sought on June 26 from the lead manager of the public issue.
However, details of the clarification sought for the IPO could not be immediately ascertained.
Market sources estimate the IPO size to be anywhere between Rs 1,500 and Rs 1,600 crore.
The issue is being managed by Kotak Mahindra Capital Co, HDFC Bank, ICICI Securities and Nomura Financial Advisory and Securities (India).
Computer Age Management Services (CAMS) claims to be India’s largest registrar and transfer agent with a market share of 69.4 per cent, based on mutual fund average assets under management, as of November 2019. During the period, it served Rs 18.7 lakh crore of AAUM (average assets under management ) of 16 mutual fund clients.
It offers integrated services for receipt, verification and processing of financial and non-financial transactions for the BFSI sector, largely to the mutual fund industry.
It also provides services of transaction, payment, settlement and reconciliation; dividend processing, record keeping, report generation, intermediary empanelment and brokerage computation and compliance.
According to the draft IPO papers, CAMS’s total income and profit after tax for 2018-19 stood at Rs 711.49 crore and Rs 130.89 crore, respectively.