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 |
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Financials
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