The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
CAMS– almost two decades of experience –is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions. Aggregate market share of approximately 70% based on mutual fund average assets under management (“AAUM”) managed by their clients and serviced by us
Offer purpose — 2258cr Complete offer for sale by promoters
Key Service domains – Mutual funds, AIF business, KYC registration, Insurance services business
Clients -SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, and Aditya Birla Sun Life Mutual Fund are serviced by CAMS
Revenues from Key Business— 85% ( mutual funds)
Huge dependency on Mutual fund business with major revenue from it (more than 85%)
Significant disruptions in information technology systems can cause it a loss
Slow revenue growth in past few years
Risk of Regulators.
Pricing power can be a hurdle to grow earnings
Long term growth seems reasonable and demand seems to increase in coming years with Indian Mutual fund industry set to grow
Almost all Major mutual funds are clients
Expensive but considering almost duopoly, it can undergo time correction
Should we apply?
High chances of allotment. Less Risk taking people can avoid
Listing day can see (-8%) to 20% . Recommended to book profits if any on listing day
3+ year holding can give good returns even from this price if things workout well
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