Detailed analysis of CAMS (Computer Age Management Services) IPO- Review about CAMS.

CAMS IPO Review - Date, Price, Business Model, Analysis & Details.

Review about CAMS's - Business model, IPO listing details, Current shareholders, Offer for sale and the news that you do not know about CAMS IPO.

Friends, another IPO goes to be launched CAMS IPO. it'll be live from Monday, means you'll bid on that from Monday.

Now the question is what's CAMS?

You might have heard its name a lot. But you may not realize its business.

Let's speak about CAMS, India's biggest RTA. RTA means Registrar and Transfer Agent. I will be able to try and answer your queries during this article regarding CAMS.

We will be covering three details.

First, whats the Business model of CAMS, which all sectors it's currently operating in How did it become India's biggest RTA within the previous few years.

Second, we'll speak about technical aspects of CAMS IPO, its size and listing and also the important dates. we are going to also cover the news surrounding CAMS.

Read the complete article till the top to understand all the important aspects of CAMS IPO. After which you'll make an informed decision, whether to invest in CAMS or not. do you have to invest here for future or short term?

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CAMS business model.

Let's start talking about the CAMS business model. To grasp the business model, I'll ask you an issue first. If you're an MF investor, you may visit any MF website, choose your MF, and put an acquisition order there.

Say you invest Rs 5000 during this MF. Once this payment is completed, your job as an investor involves an end. There are many touchpoints which require to be covered for AMC.

Say if you're investing Rs 5000 in an MF, it's said if you order in before 3pm you'll get NAV for the identical day NAV stands for Net Asset Value. Fund managers decide where to take a position your money to form an honest return but there's an enormous process behind it managed by CAMS.

I will try and explain it during a simple manner. you place a buy order at Rs 5000. Your mutual funds' values keep moving cause it invests in numerous equities which are dynamic in nature. But what quantity money you may receive for your investment of Rs 5000 is set by CAMS CAMS acts sort of a back office for each open-end investment company.

It helps in payment processing, NAV processing it further helps in unit allocation. The investor's job gets over after fixing his money. After the processing and moved to the fund manager. After this fund manager can make sure of his business on where to Invest and therefore the investor also doesn't need to take any tension here.

All the unit allocation work is handled by CAMS. Reports are important for you as an investor for regulatory and compliance purposes. CAMS takes care of it. Means CAMS connects the funds and therefore the investors moreover as fulfils all the processes in between as an RTA. If we talk further about CAMS business then CAMS has innovated itself from time to time.

Cause you recognize the technologically derived approach to take a position nowadays. Its getting improved. Before people invested in mutual funds physically via the shape. Then a unit accustomed get allocated to you. after which everything is now technologically driven thus CAMS was helpful in making that change.

It bought technology to MF investing and now it's over 200 offices in tier 2 and tier 3 cities which simplifies the customer experience from this, you may understand how well CAMS business operations are streamlined.

One more positive thing here, you would possibly have heard of the Chennai Floods explanation for which all Chennai based companies were impacted But you may know, CAMS has the alignment of its major operations from Chennai.

Even after the floods, none of the investors got negatively impacted. you'll see how well CAMS disaster management and the way well it handles its backup processes in order that there's no adverse effect on their business of any situation. After its RTA Business, it's further visiting expand itself to its KYC Business, in addition, it's started with its PMS services in addition, Portfolio Management Services.

If anyone wants to open an account, CAMS takes care of its compliance. PMS businesses can think about their core businesses, It helps run their businesses from the rear end. it's started its business with banks within the previous couple of years CAMS main business is of RTA. Its main competition is Karvy.

Out of India's top 5 MF companies, 4 companies are the shoppers of CAMS. Among the highest 15 Mutual Funds,9 of them are CAMS customers. you'll be able to understand how big its concentration is within the mutual funds' industry another important no. for investors, as on July 2020, it's processed Rs 19 lakh crores AUM they'd have allocated the money or withdrawn, the full process was handled by them.

After its business model, let's discuss its financial performance. I will be able to mainly discuss two things, how was the company's revenue and Profit If both are good then the company's operating profit would be good also.

Revenue and Profit

Let's speak about revenue and profit As you'll see on my screen, first I'm showing you the financial data of 2018 the company's revenue was Rs 657 Cr and profits was at Rs 146 Cr In 2019. Its revenue increases from Rs 657 cr to Rs 711 cr, its profit drops from Rs 146 cr to Rs 130 cr In 2020. Its revenue increases from Rs 711 CR to Rs 721 Cr. Profit increases from Rs 130 Cr to Rs 173 Cr. For FY 2021 Q1, Company registered its revenue as Rs 163 Cr and therefore the company's profit around Rs 40 crore.

One more important aspect here, if you're attending to invest during this company is many of us invest thinking of dividend, CAMS record of generating dividend has been pretty good within the past which is 65% on their PAT.

PAT means the profit left with the corporate after-tax. the corporate divide 65% of the profit among their shareholders.

The company has said that its dividend giving policy would be the identical within the future likewise. Let's discuss the technical details of the CAMS IPO. If you would like to bid, this information is incredibly important Its lot size is of 12 shares. If you're applying for plenty, you may get 12 shares. Its IPO price is from Rs 1229 to Rs 1230 shares.

For 1 lot, we'll need to bid from Rs 14,760 IPO Size goes to be of Rs 2244 Cr which makes it an enormous IPO.

Now investors want to grasp there are many IPOs wherein companies issue new shares. Talking about CAMS IPO, its visiting come via offer purchasable which implies promoters are visiting dump their stakes for this IPO thus within the coming days, its promoters holding will reduce after IPO Its bidding will start from Sept 21st, 2020 to Sept 23rd, 2020. On 1st Oct, it'll get listed tentatively.

This was the entire chronology of the entire IPO and about the small print which is extremely important for you.

Let's discuss some things around this IPO which are vital for you to understand in order that you'll be able to make an informed decision on whether to use or not.

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First, this IPO will only get listed on BSE which implies it won't get listed on NSE cause NSE bought a 44% share within the CAMS business SEBI has asked NSE to scale back its stake moreover but as of now, NSE has 30% of the stake in CAMS NSE has made it clear to SEBI that it'll dump its shares in OFS and if required, it'll further liquidate.

Now you recognize that NSE had a stake within the company and SEBI has asked them to scale back. Now it'll sell-off its stake in OFS and if required, it'll further liquidate its complete stake this was clarified by NSE It's another main promotor, HDFC is additionally visiting unload its stake via OFS.

This was vital for you to understand as an investor. This was our article on CAMS IPO.

I hope you'd have liked our article. If you did, please comment and tell us, if we should always invest in CAMS IPO or not, you'll give your reasons further If I disregarded on anything, please mention it within the comments.

Happy Investing!