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Cams is coming up with issue of 18,246,600 equity shares of face value of Rs 10 each amounting to Rs 2244 crore. It would be listed on BSE only. IPO comprises of
It is a pure OFS wherein the following shareholders are selling shares so the company will not get anything in the IPO.
NSE intends to divest its entire shareholding, held through NSE Investments, in the Company by way of sale and transfer of (i) 18,246,600 Equity Shares pursuant to the Offer; and (ii) the balance 38,400 Equity Shares at a price of Rs. 1,230 per Equity Share pursuant to the NSE Investments SPA.
The offer includes a reservation of 182500 equity shares to eligible employees at a discount of Rs 122 per share.
Issue open date: 21st Sept. 2020
Issue close date: 23rd Sept. 2020
Price band: Rs 1229-RS 1230 per share
Total revenue for FY 20has increased to Rs 721 crore from Rs711 crore in FY19. Revenue growth has remained timid during the last three years. Asset light business model has resulted in excellent margins and EBITDA. PAT has increased by 32% in FY20 due to reduction in expenses by 7%. CAMS have robust operating and net margins of 43% and 24% in FY20 respectively and they have been consistent in the last three years. CAMShas low leverage; debt to equity remaining below 0.30 for the last three years.
Quarterly performance for the Q1FY21 has also remained strong though revenues have fallen by 11% as compared to Q1FY20. Reduction in revenues is seen due to decline in the AAUM of equity oriented schemes managed by CAMS clients, which adversely affected revenue from operations. The COVID-19 pandemic resulted in a significant decline and volatility in the Indian equity markets, which caused investors to avoid higher risk assets such as equity funds and reduce their investments in such funds through withdrawals or fund exits and consequently reduce the AAUM managed by the clients.
Title | FY2020 | FY2019 | FY2018 |
Total Revenue | 721.34 | 711.81 | 657.82 |
PAT | 172.44 | 130.31 | 146.82 |
EBITDA | 308.99 | 261.74 | 274.72 |
Total Accets | 802.53 | 736.32 | 697.85 |
Gross profit margin(%) | 42.84% | 36.77% | 41.76% |
Net profit margin(%) | 23.91% | 18.31% | 22.32% |
The Issue is priced at P/E of 34.61 and P/B of 11.1 basis FY20 earnings.As such no average industry P/E or P/Bare available for comparison. Based on P/E and P/BV parameters, the issue appears to be fully priced.CAMS is well established in its business and control a major share, there are no listed peers but KFin Tech is the biggest competitor to CAMS in managing mutual fund business for clients.Since it is the first to be listed in this business sector and basis impressive client base, CAMS would attract good interest from Investors. Issue might draw listing gains and shall also give good returns in long-run. Hence, investors may subscribe for long term.
Review By CA Priyanka Choudhary on
About CA Priyanka Choudhary
Priyanka Choudhary Jain is a Chartered Accountant and an experienced credit analyst. She has worked with CRISIL as Senior Credit Analyst on ratings assignments including business and financial analysis in Corporates as well as the Public Finance Sector.
Email: [email protected]
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