a) CAMS has been a part of the Indian Financial services segment for over two decades and has built a good reputation as Registrar and Transfer Agency to the Asset Management Industry of India and as a technology-enabled service solutions partner to Private Life Insurance, Private Equity Funds, Banks, Non-Banking Finance Companies.
b) Besides serving as a B2B solutions partner, CAMS brings the ability of a B2C to serve the end customers through a variety of touchpoints such as a pan India network of Service centers, White Label Call center, Online, Mobile app, and Chatbot Services.
c) CAMS has three back-office delivery centers in Chennai and one BCP site at Coimbatore, about 500 km from Chennai and a Pan India network of 278 customer service centers. The front, middle and back offices are powered by a talent pool of 4,314 permanent resources as of 30th Sept 2019.
d) CAMS is co-owned by – NSE Investments Limited (Subsidiary of NSE), Warburg Pincus LLC (a leading global private equity firm), Faering Capital (a leading Indian mid-market private equity firm), ACSYS Investments Pvt Ltd and HDFC Group (a financial services conglomerate) and is headquartered in Chennai, India.
e) CAMS is a professionally managed, institutionally owned, SEBI regulated entity engaged as an IT-enabled service solution partner to BFSI players in India.
Business Model of the Company:
a) They drive revenue from the mutual fund’s services business.
b) 86% of revenue is contributed by fees they take from Mutual funds houses to manage their units and legal and regulatory requirements of SEBI.
c) The fee structure depends upon the size of AUM. The more the AUM, the more will be the revenue.
d) They charge higher fees on Equity Mutual funds than Debt Funds.
Overall we can say the business model is primarily moving around mutual fund AUM. If the market is booming, big positive for CAMS.
Competitors in the market providing the same services:
KFin Tech is the biggest competitor to CAMS in managing mutual fund business for clients.
a) Mutual Funds Services Business: KFin Technologies Private Limited.
b) Electronic Payment Collection Services Business: Indiaideas.com Limited (BillDesk), Ingenico repayments India Private Limited (Tech Process) and Razorpay Software Private Limited
c) Insurance Services Business: NSDL Database Management Limited, Karvy Insurance Repository Services Limited and CDSL Insurance Repository Limited.
d) Alternative Investment Fund Services Business: KFin Technologies Private Limited, Sundaram BNP Fund Services Limited (now acquired by KFin Technologies Private Limited) and IL&FS Securities Services Limited.
e) Banking and Non-Banking Services Business: Karvy Data Management Services Limited, PAMAC Finserve Private Limited and Suma Soft Private Limited.
f) KYC Registration Agency Business: CDSL Ventures Limited, Dotex international Limited and Karvy Data Management Services Limited.
g) Software Solutions Business: KFin Technologies Private Limited
Objects of the CAMS IPO:
CAMS IPO Details:
|Open Date:||Sep 21 2020|
|Close Date:||Sep 23 2020|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Building|
|Issue Size:||2244 Cr.|
|Lot Size:||12 Shares|
|Issue Price:||₹ 1229-1230 Per Equity Share|
|Listing Date:||Oct 01 2020|
Promoters And Management:
Financials of CAMS IPO: