New IPOs next week: NSE-backed CAMS, Chemcon Speciality Chemicals public issues to open for bidding

Following the successful IPOs of Happiest Minds Technologies and Route Mobile, Computer Age Management Services (CAMS) and Chemcon Speciality Chemicals are likely to launch their initial public offering (IPO) on September 21. IPOs of Computer Age Management Services (CAMS) and Chemcon Speciality Chemicals will remain open for public subscription from September 21-23, PTI cited merchant banking sources as saying. CAMS and Chemcon Speciality Chemicals IPOs will be fifth and sixth IPOs, respectively, this year, considering the listing of SBI Cards and Payment Services in March and Rossari Biotech in July as well. CAMS’ estimated IPO size will be between Rs 1,500 crore to Rs 1,600 crore, while that of Chemcon Speciality Chemicals’ is likely to garner Rs 350 crore.

Chennai-headquartered CAMS is co-owned by NSE Investments, Warburg Pincus, Faering Capital ACSYS Investments and HDFC Group. It is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions. The IPO of CAMS will see a sale of 1.22 crore equity shares through offer-for-sale by Great Terrain Investment, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, as per the draft papers filed with Sebi. According to the PTI report, CAMS claims to be India’s largest registrar and transfer agent with a market share of over 69 per cent, based on mutual fund average assets under management (AAUM), as of November 2019. During the period, it served Rs 18.7 lakh crore of AAUM of 16 mutual fund clients. 

The issue will be managed by Kotak Mahindra Capital Co Ltd, HDFC Bank Ltd, ICICI Securities Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd. “We expect the price band could be in the range from 1150 to 1250 and this means the upper-end issue size would be worth Rs.1520cr. We believe This IPO would get a good subscription considering high RoE, healthy cash flow, professional promoter, and market leader,” said Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking Ltd.

On the other hand, the Baroda-based company Chemcon Speciality Chemicals’ IPO comprises a fresh issue of shares worth Rs 175 crore and an offer for sale of 43 lakh equity shares from the promoters. The company supplies its products to domestic customers and also exports to countries including the US, China, Japan, UAE, Azerbaijan, Serbia, Russia and Malaysia, as per the draft papers. Intensive Fiscal Services and Ambit Capital are the managers of the offer. The company has proposed to utilise the net proceeds from the fresh issue for capital expenditure towards the expansion of its manufacturing facility, to meet working capital requirements and general corporate purposes.