What is IPO?
Cams IPO Review 2020 IPO refers to Initial Public Offering, Whenever any company wants to raise funds for their expansion they sell the part of shares to the individuals at a particular rate. When a company raises the funds for the first time they release IPO and list their company to the stock market.
About CAMS: CAMS refers to Computer Age Management Service, CAMS is basically a Mutual Fund Transfer agency which also provides the services of PAN/TIN.
This IPO consists of 18,246,600 no. of equity shares.
CAMS was incorporated in 1988, It is popularly known for being the service provider for investors as well as Mutual fund Companies. The services offered by CAMS include verification, processing, and receipt of financial as well as non-financial transactions.
It also is a service provider for investors which include a Consolidated account statement, changing mandate, and others.
The face value of the shares in Rs.10 which ultimately aggregates up to Rs. 2,244.33 Crores. The price of each equity share can vary from Rs. 1229 to Rs. 1230 per share.
The IPO opened on 21 September 2020 and closed on 23 September 2020. You can order the shares from the IPO but the minimum order or no. of shares is 12 shares.
The CAMS IPO is basically registered with Link Intime India Private Ltd. The shares of the said IPO are listed on the Bombay Stock Exchange.
For the past twenty years, CAMS has been registered under the Indian Financial Services segment. With the trust of the shareholders, stockholders, and its clients it has built its own Goodwill in the market as Registrar.
It also provides its services to the Asset Management Industry of India where it acts as the Transfer Agent. It also serves Private Life Insurance, Private Equity Funds, Non-Banking Finance Companies, and provides them the service solution with the best technology.
Apart from serving the Business as a solutions partner, It also stays connected to the end customers. It establishes the connection between the business and customer by the means of touchpoints including PAN India Network of Service centers, White Label Call Center, Chat-bot services, Mobile app, and Online services.
CAMS IPO has three delivery centers that operate in the back-end process. One of its centers is in Chennai and other operating sites at Coimbatore which is distanced approximately 500 km from Chennai.
It also has a PAN India Network which operates around 278 customer service centers. These operating offices are sponsored and powered by 4,314 permanent resources as of 30th September 2019 which can be termed as a Talent pool.
National Stock Exchange Investments Limited which is a subsidiary of National Stock Exchange, Warburg Pincus LLC, Faering Capital, ACSYS Investments Pvt. Ltd and HDFC Group are the co-owners of the CAMS IPO. It has headquarters in Chennai, India which is regulated by SEBI.
The subscription on Day 1 was subscribed by the customers. CAMS IPO received the total bidding of no. of shared i.e. 1.05 crore against the total issue of the size 1.28 Crore shares excluding the anchor book portion.
CAMS IPO is a Public Offering Institution that has its benefits and disadvantages. Before entering the CAMS IPO and buying the shares you must consider all its benefits and disadvantages to stay updated and beware of the unknown facts about the particular institution.
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Benefits of CAMS IPO:
Business Model with Low Investment
It involves low incremental capital, you don’t have to invest a very huge amount of money for the start of the business. It also provides a benefit that as your revenue grows, you will keep your ROCE generating at a higher rate.
The rate of ROCE stands at 40%, Ultimately, if you have your revenues getting higher this will be beneficial for you.
CAMS IPO does not face many strong competitors in the market. It has one strong competitor which is Karvy. It is one of the biggest players in the market. Clients find The Indian regulations in the market very complex, which is not at all the case with CAMS IPO business.
The usage of the CAMS IPO business is very easy and any user can trade in this IPO without having complex knowledge of the listings and shares.
The prices of the shares matter a lot. Very high priced shares or very low priced shares are not preferred by the customers. CAMS IPO offers the shares at very moderate prices that a customer can easily buy.
Disadvantages of CAMS IPO:
Partial selling of shares
The shares being sold by the promoters can be very partial sometimes which is considered negative. This is not a good sign for the potential customers who are not linked with the promoters and partners.
Before buying the shares on CAMS IPO you must know about this fact that this situation can also be faced by you.
Low Revenue Growth
Revenue Growth on the CAMS IPO is not so great as compared to its competitors. In the past 3 years, it has grown revenue growth but not that much which a customer can expect.
The ROCE as of 31 March 2020 is 40% which means the revenue growth rate must be around the same percentage.
Business depends on Mutual Funds
The CAMS IPO has 86% of its business is dependent on Mutual Funds. Mutual Fund charges a very high amount of fees from the clients. As a result of which the Expense Ration decreases.
The Profit ratio of the Mutual fund’s investment gets reduced, which ultimately impacts CAMS IPO’s business. Its business growth depends on the Mutual fund’s business growth. If their AMU’s don’t grow CAMS IPO business growth will not grow.
CAMS IPO does not guarantee the allotment of share in a particular company’s Offering. Once a bid is placed, the amount of money gets deducted and you don’t get the particular allotment that you applied for, the money gets blocked which means it cannot be used anywhere else.
The details you mentioned in the IPO must be accurate and up to date, otherwise, your application may get rejected. Also, you get an option to change or rectify the wrong and inaccurate details, but if you are unable to do that, your application will not be accepted.
The listing Date of the CAMS IPO will be 1st October 2020. You must be prepared for that Happy Trading.
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