Last updated: 20 Sep, 2020 | 02:21 pm
CAMS (Computer Age Management Services) is set to raise up to ₹2,242 crore via IPO which opens on 21st September, Monday. Here are the details.
CAMS operates in a 4-player market with a 70% market shares. There are three other registrar and transfer agents in the country Karvy with 27% Market share, and Franklin Templeton Asset management with 3% share, and Sundaram BNP Paribas with a market share of just 2%.
CAMS enjoys a 70% market share in a market with high entry barriers, giving it a valuable moat. It has also delivered strong margins and returns consistently, with negative working capital. Given factors such as healthy free-cash flows, debt-free status, strong return ratios, healthy operating margins and no listed peers, we remain positive on the prospects of the issue.