NSE to exit Cams in over ` 2,000-cr IPO

The initial public offering (IPO) by Chennaibased Computer Age Management Services (Cams) will open on September 21, with a price band of Rs 1,229-Rs

1,230 per equity share of Rs 10 face value.

Cams is India's largest registrar and transfer agent of mutual funds. It processes 69.6 per cent of the assets under management of the mutual fund industry.

US private equity firm Warburg Pincus holds

43.50 per cent stake in Cams through its investment holding firm Great Terrain and has been identified as promoter of Cams.

The entire public offer is an offer for sale (OFS) by NSE Investments, another investor in the company. At the upper price band, the IPO will be raising Rs 2,242 crore.

As the IPO is an offer for sale of equity shares, Cams will not receive any proceeds from the offer, the company said.

“A Sebi letter dated February 4, 2020 to the NSE had issued directions that NSE’s entire stake in the company (Cams) held through NSE Investments, is required to be divested within a period of one year from the date of receipt of the Sebi letter,” the red herring prospectus said.

After the public issue, shares of Cams will be listed on the BSE.

Bids by anchor investors will be submitted, and allocation to them will be completed on September 18, one working day prior to public bid/ offer opening.

In the offer, allocation to qualified institutional buyer (QIBs) will not be more than 50 per cent of the net offer, non-institutional bidders will be not less than 15 per cent of the net offer and retail individual bidders will be allocated remaining 35 per cent of the net offer.

Kotak Mahindra Capital, HDFC Bank, ICICI Securities and Nomura Financial Advisory are the book running lead managers to the issue.