On listing day, CAMS opens for trading at Rs 1538 - premium of 23 pct over issue price
CAMS shares opened for trading at Rs 1538 apiece on listing day today, which implies a premium of 23 pct over the issue price of Rs 1230 apiece.
CAMS shares opened for trading at Rs 1538 apiece on listing day today, which implies a premium of 23 pct over the issue price of Rs 1230 apiece. The price band for CAMS IPO issue was fixed at Rs 1229-1230 apiece.
CAMS share price, after listing, made an intraday high of Rs 1550 and witnessed some profit booking. At the current market price of Rs 1450 the company is trading at a market cap of nearly Rs 7000 Cr.
The company’s management offered a share sale of nearly Rs 2242 Cr which was subscribed nearly 47 times. Non-Institutional investor’s category made the highest purchases with the IPO issue subscribed over 111 times followed by QIBs category which was subscribed over 73 times. The Retail portion was subscribed by 5.45 times. The company has raised nearly 666 Crs from anchor investors before the IPO.
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Considering the strong financials of the company, healthy cash position, being debt-free, strong market share and high return ratios, Market Guru Anil Singhvi believes CAMS is his favourite stock and should be included in the portfolio. Even though the stock didn’t give over 100% returns like some other IPOs did, it is still worth holding in the portfolio for good returns in the long term.
Importantly, investors should know that the company will not receive any funds from this IPO. NSE Investments was selling shareholders that exited in the company after offloading 1.82 Cr shares. SEBI had asked the arm of NSE to divest its entire holding in CAMS.
CAMS is a technology-driven financial infrastructure and service provider to mutual funds and other financial institutions. The company’s clients included top fund houses and few largest mutual funds based on AUM’s. They don’t have any listed peers in india. They can be compared with Unlisted Sundaram BNP Paribas and more closely with Karvy. After the IPO the total promoter holding will remain intact at 43.5% and public shareholding will stand at 56.5%. Company is now co-owned by Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group.
(Authored by Rahul Kamdar)
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