HDFC revises CAMS stake sale deal with Warburg Pincus
Mumbai: Mortgage lender Housing Development Finance Corp. Ltd (HDFC) has revised its stake sale plan in Computer Age Management Services Pvt. Ltd (CAMS) to Warburg Pincus and will now sell only 5.1% of holdings to the latter, HDFC said in a stock exchange filing.
CAMS is a registrar and transfer agent that offers physical touch point for receipt, verification and processing of financial and non-financial transactions. CAMS also provides back-end services to mutual fund houses related to subscription, redemption, SIP, transfer and dividend. It is also engaged in services related to insurance, venture funds, banks and NBFCs.
On 20 December, HDFC had notified the exchanges that it will be selling a 6.3% stake in CAMS to an affiliate of US private equity firm Warburg for a consideration of Rs209.5 crore.
The revised deal will fetch HDFC Rs169.5 crore. The transaction values CAMS at around Rs3,325 crore.
The announcement was made after market hours on Wednesday. HDFC did not disclose the reasons for revising the stake sale.
The transaction is expected to be completed by 30 April. Post the stake sale, HDFC will hold a 5.99% stake in CAMS. HDFC has been an investor in CAMS since 2000.
HDFC Bank, which is also a shareholder in CAMS, is also selling a part of its shareholding in CAMS to Warburg at the same price at which the mortgage lender is selling its shares. The quantum of HDFC Bank’s stake sale was not disclosed.
CAMS operates around 265 service centres across the country and employs 6,000 people. For the financial year 2016-17 it reported a revenue of Rs478.3 crore.
Warburg is an active investor in India. In the last couple of years, it has invested in companies such as multiplex operator PVR Ltd and Bharti Telemedia, the direct-to-home arm of Bharti Airtel.
Last year, Warburg had also announced its intention to invest $360 million in Tata Technologies Ltd, but the deal was called off in February.
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