Computer Age Management Services Pvt. Ltd (CAMS), a registrar and transfer agent (RTA) serving 16 mutual funds in India, is hiring investment banks for its proposed ₹1,000-crore initial public offering (IPO), three people aware of the development said, requesting anonymity.
The IPO will be an offer for sale (OFS) that will see the company’s existing investors divest partially their stakes, said the first person cited above.
The investors of CAMS include India’s largest private mortgage lender Housing Development Finance Corp. Ltd, global private equity (PE) investor Warburg Pincus LLC, India’s mid-market PE firm Faering Capital and NSE Investments Ltd, a unit of the National Stock Exchange Ltd.
“They will be appointing investment banks and other advisers in the next couple of weeks to start work on the IPO," the first person said.
Calls to the company’s Chennai office, and an email to Anuj Kumar, president and CEO, CAMS, remained unanswered.
Founded in 1998, CAMS is one of India’s largest RTAs that processes mutual fund transactions and maintains investors’ records. It offers physical touch points for receipt, verification and processing of financial and non-financial transactions. The company also offers back-end services to mutual fund houses for subscription, redemption, systematic investment plans, transfer and dividends.
As of December 2018, CAMS had a 67% market share in the mutual fund industry, with ₹15.7 trillion worth assets under management and maintained records of nearly 60 million folio accounts, according to its website.
Besides acting as a transfer agent to mutual funds, the Securities and Exchange Board of India-regulated entity also provides online service solutions to private life insurers, private equity funds, banks and non-banking financial companies. CAMS operates around 265 service centres and employs 6,000 people. In 2016-17, it had a revenue of ₹478.3 crore.