CAMS is a technology-driven financial infrastructure and services provider company to mutual funds and other financial institutions with over two decades of experience. They are India's largest registrar and transfer agent of mutual funds with an aggregate marketshare of approximately 70% based on mutual fund average assets under management ('AAUM') managed by the clients and serviced by them during July 2020, according to the CRISIL Report. Over the last five years, they have grown the market share from approximately 61% during March 2015 to approximately 69% during March 2020, based on AAUM serviced, according to the CRISIL Report. Company's mutual fund clients include four of the five largest mutual funds as well as nine of the 15 largest mutual funds based on AAUM during July 2020, according to the CRISIL Report. With the initiative of creating an end-to-end value chain of services, company has grown the service offerings and currently provide a comprehensive portfolio of technology based services, such as transaction origination interface, transaction execution, payment, settlement and reconciliation, dividend processing, investor interface, record keeping, report generation, intermediary empanelment and brokerage computation and compliance related services, through the pan-India network to the mutual fund clients, distributors and investors. They also provide certain services to alternative investment funds, insurance companies, banks and non-banking finance companies. As of July 2020, CAMS serviced Rs 19.2 trillion of AAUM of 16 mutual fund clients, according to the CRISIL Report.The ten-year CAGR of QAAUM of mutual funds between March 2010 and March 2020 was 13.4% according to the CRISIL Report, while the ten-year CAGR of QAAUM of mutual funds serviced by the CAMS over the same period was 15.8%. The five-year CAGR of QAAUM of mutual funds between March 2015 and March 2020 was 18% according to the CRISIL Report, while the five year CAGR of the QAAUM of mutual funds serviced by the CAMS over same period was 21%. Further, company's mutual fund clients had 19.77 million SIP accounts as of June 30, 2020. Company charges more fees from equity mutual funds as compared to other categories of mutual funds. The AUM of equity mutual funds serviced by them grew from Rs 2,180 billion as of March 31,2015 to Rs 5,228 billion as of March 31, 2020, at a CAGR of 19.1%, and as of June 30, 2020 was Rs 6,190 billion. Over the years, CAMS has leveraged the domain expertise, processes and infrastructure to diversify the offering of services to cater to a variety of other financial services sectors.# In the electronic payment collections services business, company manages mandated transactions, including registering of mandates, initiation of collections, reconciliation and the related reporting services for mutual funds, non-banking finance companies and banks.# In the insurance services business, company offers processing of new business applications, holding policies in dematerialized form, servicing policies and other support functions to insurance companies. For the financial year 2018, they had a marketshare of 39% of the insurance repository business, based on e-insurance policies being managed, according to the CRISIL Report.# In the alternative investment funds services business, they provide services to investors, manage records and perform fund accounting and reporting, among other services, for alternative investment and other types of funds.# In the banking and non-banking services business, they offer digitization of account opening, facilitation of loan processing and back-office processing services to banking and non-banking financial institutions.# In the KYC registration agency business, they verify and maintain KYC records of investors for use by financial institutions.# In the software solutions business, their technology team develops software for the mutual funds services business and for mutual fund companies. Company's solutions help reduce the need for its clients to make significant investments in operational infrastructure, thereby allowing them to increase their focus on their core business activities. Company offers an integrated and customized portfolio of services through the pan-India physical network comprising 271 service centers spread over 25 states and five union territories as of June 30, 2020, and which are supported by call centers in four major cities, four back offices (including a disaster recovery site), all having real time connectivity, continuous availability and data replication and redundancy. Further, they offer many of the services online and through the several mobile device applications, to investors, the clients, their distributors and their channel providers. On financial performance front, CAMS has posted turnover/net profits of Rs. 502.64 cr. / Rs. 124.22 cr. (FY17), Rs. 661.45 cr. / Rs. 146.82 cr. (FY18), Rs. 711.50 cr. / Rs. 130.31 cr. (FY19) and Rs. 721.34 cr. / Rs. 172.44 cr. (FY20). For Q1 FY21, company has posted Rs 163.46 Cr turnover and Rs 40.60 Cr profit. Thus company has posted good growth over last couple of years. Company has posted an average EPS of Rs. 31.69 and average RoNW of 31.40% for last three fiscals. Issue is priced at a P/BV of 11.36. There is no Listed peers as per RHP. If we attribute latest earnings of FY20 on fully diluted equity post issue, then asking price is at a P/E of around 34.57 and if we annualise FY21 earnings and the asking P/E is around 37. So this IPO looks fully priced. On BRLM's front, four BRLMs are associated with this IPO, and have handled around 26 IPOs in last three fiscals, and from last 10 IPOs, 4 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs, 3 are trading below issue price and remaining above issue price. ( As on 15.09.2020 ) As per financials, company's growth is good ( CAGR 12% from FY17 to FY20 ), RoNW is 31% for last three fiscals and issue is priced at P/E of around 35 as per FY20 and 37 as per annualised FY21. Company's main focus is on providing technology driven financial infrastructure and services to MFs and other financial institutions. Company has dominating market share in this segment. So we give SUBSCRIBE rating to this IPO.
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