Computer Age Management Services - CAMS IPO is opening on Monday Sep-21st and closes on Sept-23rd.
Price Band ₹1,229 – ₹1,230 per share
Retail Portion: Not less than 6,322,435 Equity Shares - 35%
NOTE The issue is OFS by existing Shareholders and hence NO MONEY will flow into the COMPANY.
Here are the Research Reviews & Recommendations
Devesh Agarwal of IIFL Securities said,
CAMS is the dominant player in a two-player MF RTA industry, with 70% market share. It services 4 of the top-5 MFs in the country. Its revenue growth is directly linked to the AUM growth of its partner MFs and it is, hence, a proxy play on the MF industry. The opportunity landscape for the MF business in India is huge, given low penetration and financialisation of household (HH) savings, thus providing long-term visibility. The IPO valuation is at discount to the nearest comparables (AMCs, Depositories and Exchanges) and has scope to re-rate.
SMC has the following views,
Considering the valuation at upper price band of Rs.1230, EPS and P/E of FY2020 are Rs. 35.55 and 34.60 multiple respectively and at a lower price band of Rs. 1229, P/E multiple is 34.57; at upper price band of Rs.1230 , book value and P/B of FY2020 are Rs.110.65 and 11.12 multiple respectively and at a lower price band of Rs. 1229, P/B multiple is 11.11. No change in pre and post issue EPS and Book Value as the company is not making fresh issue of capital.
DealMoney Securities Ltd has the following recommendation,
CAMS is India's largest registrar and transfer agent of mutual funds with an aggregate market share of approximately 70% based on mutual fund AAUM managed by its clients and serviced by the company during July 2020. CAMS has Leadership position, integrated business model and PAN India presence. Based on FY20 consolidated numbers, the issue is priced at a P/E of 34.6x. at diluted EPS of FY20 Which is priced fairly therefore we recommend SUBSCRIBE over the issue for a long term perspective
JM Financial, HDFC Securities, Axis Securities, ICICI Direct have no recommendation for retail investors.