Everything You Need to Know About the CAMS (Computer Age Management Services) IPO

CAMS (Computer Age Management Services) is a Mutual Fund Transfer Agency to the Indian Asset Management Companies with the market share of about 70% of the assets under management.

The company offers integrated services for the receipt, verification, and processing of financial and non-financial transactions for the BFSI (Banking, Financial Services, and Insurance) sector, largely the mutual fund industry, and also provides services of the transaction, payment, settlement, and reconciliation, dividend processing, record keeping, report generation, intermediary empanelment, and brokerage computation and compliance.

The size of the public offering is expected to be around Rs. 1600 crores, which includes Offer for Sale form promoters, For detailed information you can check the IPO Prospectus .

Some interesting bits from CAMS DRHP

CAMS is India’s largest registrar and transfer agent of Mutual Funds with a market share of almost 70% based on Mutual Fund AAUM. Over the last five years, CAMS has grown its market share from 60% during March 2015 to 68% during March 2019. CAMS Mutual Funds clients include four of the five largest Mutual Fund houses.

As of November 2019, CAMS has serviced Rs. 18.7 trillion of AAUM of 16 Mutual Fund clients. The ten-year CAGR of monthly AAUM of Mutual Funds between March 2009 and March 2019 was approximately 17.5%, while the ten-year CAGR of monthly AAUM of Mutual Funds serviced by CAMS over the same period was approximately 19.1%. Further CAMS Mutual Funds clients had 19.2 million SIP accounts as of September 2019. The AUM of equity mutual funds serviced by CAMS has grown from Rs. 2,180 billion from March 2015 to Rs. 6,701 billion as of September 2019, at CAGR of 32%.

Market share of various MF RTAs in terms of Mutual Fund AAUM managed for the periods indicated:

Mutual Fund Industry

The assets of the Indian mutual fund industry have grown consistently since the financial year 2000. The AUM has increased at a CAGR of 17.4%, from ₹1.1 trillion from March 31, 2000, to ₹23.8 trillion as of March 31, 2019.

Mutual fund AUM as a percentage of GDP rose from 4.3% in the financial year 2002 to 12.5% in the financial year 2019. However, the industry still has tremendous potential for growth, considering a largely untapped market with favorable demographics of a young population.

The following graph highlights India’s Mutual Fund penetration as compared to certain other countries (GDP in USD terms has been considered for the graph below)

The SIP’s in the Mutual Fund industry’s AUM has grown from approximately 8% in August 2016 to approximately 12% in June 2019 as illustrated in the graph below (SIP AUM expressed in ₹ billion):

Expected growth in overall AUM over the next five years:

Indicative Timetable

Event Date
Issue Period 21st Sep 2020 - 23rd Sep 2020
Price Range 1229 - 1230
Minimum Bid Quantity 12
Finalisation of Allotment 28th Sep 2020
Initiation of Refunds 29th Sep 2020
Credit of Shares 30th Sep 2020
Listing 1st Oct 2020
Mandate end date 10th Oct 2020

How do I apply for the CAMS IPO?

You can apply for the CAMS IPO on Console using any supported UPI app.

Once you have entered your bid on Console, you will receive a mandate collect request on your UPI app. On acceptance of the mandate, the bid amount will get blocked in your bank account. Read more.

So when we invest through ‘Coin’ app, then who does the recordkeeping, CAMS or Karvy ?

Any fund you purchase through Coin, record keeping will be done by that AMC’s RTA.

CAMS manages the likes of

  • Aditya Birla Sun Life Mutual Fund
  • HDFC Mutual Fund
  • ICICI Prudential Mutual Fund
  • Kotak Mutual Fund
  • SBI Mutual Fund

You can view the full list here.

While Karvy manages likes of

  • Axis Mutual Fund
  • Edelweiss Mutual Fund
  • LIC Mutual Fund
  • Motilal Oswal Mutual Fund
  • Nippon India Mutual Fund

You can view the full list here.