Published On: Wed, Dec 4th, 2019

ipo: CAMS investors look for partial exit via IPO

Mumbai: Private equity investors Warburg Pincus and Faering Capital, along with Housing Development Finance Corp (HDFC) and NSE Strategic Investment Corp, will sell a part of their stakes in mutual fund registrar Computer Age Management Services Ltd (CAMS) in an initial public offer (IPO) that could raise up to Rs 1500 crore from retail and institutional investors.

The company will file initial papers with the regulator within next fortnight and likely list on the stock exchanges subject to regulatory approvals before the end of fiscal 2020, three people familiar with the company’s plans said.

“This is an out and out offer for sale. The investors who have put money in the firm over the last few years are now planning to take back some profits. The company itself is cash rich and does not need any money. Calculations in terms of how much each investor will sell and valuations of the company are still being worked out,” said one of the three people cited above.

New York-based $79 billion private equity firm Warburg Pincus is the largest shareholder with 43.5 per cent in the company. It started investing in the company late in 2017 and has since bought stake from other investors, including HDFC Group, NSE Investment and former promoter V Shankar’s Acsys Investment Pvt Ltd.

HDFC and HDFC Bank together owned 23.17 per cent in CAMS at one time with Acsys holding 31.83 per cent and NSE Investment 45 per cent. Currently, HDFC’s stake is down to 12.5 per cent while NSE Investment holds 37.5 per cent in the company. Local PE firm Faering Capital owns 4 per cent. The rest of the shareholders hold 2 per cent or lower in the company.

“The shareholders have to decide how much each of them wants to dilute. Those discussions are still ongoing and that will also be crucial in deciding the valuation of the company. But so far, all shareholders want to keep some stake in the company after the issue,” said a second person familiar with the company’s plans.

Kotak Mahindra and Nomura have been appointed by the company for the share sale.

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