CAMS IPO

(ZEE BUSINESS)

BASIC DETAILS ABOUT IPO  (21-23 September)

Price Band

1229-1230

Bid Lot

12 shares

OFS (Amount)- AT  Upper Band

2244.33

OFS (Shares)-  Cr

1.82466

Total issue amount- AT Upper Band

2244.33 cr

Post issue Implied Market Cap

6000cr

Post issue (Shares)/Same as Pre- Cr

4.87868

Book Running Lead Manager:

Kotak,HDFC Bank, ICICI Securities, Nomura and Link In Time

BASIC FINANCIALS (P&L)

(Amount in cr)

FY20

FY19

FY18

Revenue

699.6

693.6

641.5

                Growth

0.9%

8.1%

 

EBITDA Margin

41.1%

35.1%

40.3%

 PAT (Ex- Other Income)

158.5

119.1

135.8

                Growth

33.1%

-12.3%

-

PAT Margin(Ex- Other Income)

21.7%

17.2%

21.2%

Other Income as % of Revenue

3.1%

2.6%

2.5%

Employee cost % of Revenue

36.9%

39.6%

35.3%

Operating expenses % of Revenue

12.4%

15.3%

14.7%

 

Segmental Information

(in cr)- Revenue from

FY20

FY19

FY18

Data Processing

553.4

535.0

493.5

% of Total Revenue

79.1%

77.1%

76.9%

Customer Care Service

62.5

65.7

71.1

% of Total Revenue

8.9%

9.5%

11.1%

Recoverable

36.2

50.0

41.1

% of Total Revenue

5.2%

6.9%

6.4%

Miscellaneous Services

38.9

35.3

30.8

% of Total Revenue

5.6%

5.1%

4.8%

Software licence fee,Development& Support services

8.7

9.7

5.0

% of Total Revenue

1.2%

1.4%

0.8%

BASIC FINANCIALS (Balance sheet & Cash Flows)

   (Amount in cr)

FY20

FY19

FY18

Right to use Assets+Intangiable

233.3

249.0

253.5

% of Total assets

29.1%

33.8%

36.3%

Investments

305.6

230.5

216.1

% of Total Assets

38.1%

31.3%

31.0%

Cash and Bank Balance

50.5

43.5

27.8

% of Total Assets

6.3%

5.9%

4.0%

Total Equity

539.8

449.4

451.2

 

% of Total Assets

67.3%

61.0%

64.7%

FCF

186.1

151.7

119.2

Growth%

22.6%

27.3%

-

FCF/PAT

1.07

1.16

0.81

 

 

----------------------------------------------------------------------------------------------------------------------------------------------------------------

PEER COMPARISION

There are no listed companies in India that engaged in a business similar to the company.

Comparison with unlisted players of Mutual Fund Registrar and Transfer agents MF RTAs in terms of Mutual Fund AAUM managed for the periods:

Name

Market Share

Company

 July 20

Mar-20

Mar-19

Mar-15

Sundaram BNP Paribas has been acquired by KFin Technologies in OCT 2019.

CAMS

70%

69%

68%

61%

KARVY

27%

27%

26%

31%

SUNDARAM

-

-

1%

2%

FRANKLIN

3%

4%

5%

6%

--------------------------------------------------------------------------------------------------------------------------------------------------------------MANAGEMENT/Shareholding

·         Great Terrain Promoter of the company held 43.5% pre issue and will hold 31.0% of Shareholding, Great Terrain was incorporated as private company under the laws of the Republic of Mauritius in 2017. Principal activity of Great Terrain is that of Investment holding and is wholly owned by Harmony River Investment Ltd a company incorporated under Laws of Republic of Maurities.

·         Great Terrain will offload 12.5% of its holding prior to Bid/Offer Opening date as per the agreement and NSE will make complete exit who previously held 37.48% holding via OFS and small portion of 38,400 transferred to acquirer SBI Life.

·         HDFC already holding 5.99% stake and HDFC Bank holding 3.33% Stake.

·         Offloading by Great Terrain of 12.5% will be acquired by ICICI Prudential Fund, SBI Funds, HDFC Funds, IIFL, SBI Life, Acacia Banyan Partners, Edelweiss ,Ashoka Indian Equity & India Acron Fund.

·         Chairman is Dinesh Kumar Mehrotra (Age 67) who holds a bacelor’s degree in science and has vast experience  also previously served as Chairman and MD of LIC  and currently holds directorship in many companies like Metropolitan exchange, SBI Cards, Tata AIA, UTI AMC etc.

·         Management has vast experience Anuj Kumar who is CEO worked with companies like IBM India, Escorts Finance etc or Mr NarendraOstawal a non executivedirector  ,CA , Post graduate from IIM Banglore worked for McKinsey etc.

 

BUSINESS –

Before getting into the core business lets first understand Basicflow . (There can be many possibilities it is the general logical flow) .  (< meaning subset)

Investment in Mutual Funds of Household < GFS < GDS <GDP

As GDP grows , per capita GDP improves which results in GDS( Gross Domestic savings) improvement which in turn results in improvement in GFS( Gross Financial savings) which is part of GDS  and as GFS increases amount invested in mutual funds increase.

As GDP was growing so was per capita GDP but could not convert that in GDS mainly due to increase in Final consumption expenditure thus GDS as % of GDP reduced however GFS as % have shown resilience which shows household savings improved thus you see GFA (Gross Financial Assets)improving and within which amount invested in Mutual fund by households increasing but reduced in FY20 ending. The reason why AUM Last row is higher than Second last row ,as last row is AUM which is Total AUM from Households& Corporates.

Data Taken from RHP and World bank Data 

 

FY14

FY15

FY16

FY17

FY18

FY19

FY20E

FY21P

FY22 P

FY23P

FY24P

GDP

6.4%

7.4%

8.0%

8.3%

7.0%

6.1%

5.0%

-5.0%

8.5%

6.5%

6.8%

Per capita GDP ('000)

-

105

116

128

140

152

149

167

184

202

220

GDS  as % of  GDP

31.4%

30.6%

30.4%

30.2%

29.6%

28.0%

-

-

-

-

-

GFS as % of GDS

52%

52%

60%

55%

64%

58%

-

-

-

-

-

GFA of Household ( trillion)

-

-

-

-

139

155

167

-

-

-

-

*Of which Mutual fund( trillion)

-

-

-

-

10.7

12.4

11.6

-

-

-

-

AUM  (trillion)

9.1

11.9

13.5

18.3

23.1

24.5

27

 

 

 

 

 

 

 

Financials


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