Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Computer Age Management Services / Equity Capital Markets

<div><p>Computer Age Management Services (CAMS) is looking to raise up to US$314m in its Indian IPO. The company is backed by Warburg Pincus and counts <a href="https://www.smartkarma.com/entities/national-stock-exchange" target="_blank" data-smartkarma-citation="entities:23751:1" rel="noopener">National Stock Exchange (NSEIN IN)</a>, <a href="https://www.smartkarma.com/entities/housing-development-finance-corporation" target="_blank" data-smartkarma-citation="entities:252:1" rel="noopener">Housing Development Finance Corporation (HDFC IN)</a> and <a href="https://www.smartkarma.com/entities/hdfc-bank-limited" target="_blank" data-smartkarma-citation="entities:558:1" rel="noopener">HDFC Bank (HDFCB IN)</a> amongst its shareholders.</p></div><div><p>CAMS is India’s largest registrar and transfer agent (RTA) of mutual funds (MFs). As of Jun 2020, it had 70% market share based on its clients average AUM (AAUM). It services four of the five largest mutual funds, as well as nine of the 15 largest mutual funds based on AAUM. Its revenue is linked to its clients AUM and hence, it has been able to ride on the overall growth in the industry, as it services some of the biggest Indian mutual funds. </p></div><div>
<p>I have covered most of the aspects of the deal in my earlier note, <a href="https://www.smartkarma.com/insights/computer-age-management-services-pre-ipo-quasi-monopoly-status-muddled-by-inconsistent-performance" target="_blank" rel="noopener">Computer Age Management Services Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance.</a></p>
<p>In this note, I'll run the deal through our ECM framework and comment on recent updates. </p>
</div>

Computer Age Management Services (CAMS) is looking to raise up to US$314m in its Indian IPO. The company is backed by Warburg Pincus and counts National Stock Exchange (NSEIN IN), Housing Development Finance Corporation (HDFC IN) and HDFC Bank (HDFCB IN) amongst its shareholders.CAMS is India’s largest registrar and transfer agent (RTA) of mutual funds (MFs). As of Jun 2020, it had 70% market share based on its clients average AUM (AAUM). It services four of the five largest mutual funds, as well as nine of the 15 largest mutual funds based on AAUM. Its revenue is linked to its clients AUM and hence, it has been able to ride on the overall growth in the industry, as it services some of the biggest Indian mutual funds. 
I have covered most of the aspects of the deal in my earlier note, Computer Age Management Services Pre-IPO - Quasi Monopoly Status Muddled by Inconsistent Performance.
In this note, I'll run the deal through our ECM framework and comment on recent updates. 


Computer Age Management Services IPO - Appears Fairly Priced

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>Late Friday evening, the Securities and Exchange Board of India (SEBI) published a blandly titled '<a href="https://www.sebi.gov.in/legal/circulars/sep-2020/circular-on-asset-allocation-of-multi-cap-funds_47542.html" target="_blank" rel="noopener"><em>Circular on Asset Allocation of Multi Cap Funds</em></a>'. The implications of the circular, however, are not as bland and will result in a big shift in allocation among market cap segments in Indian mutual funds and drive trading activity over the next few months.</p><p>SEBI has now mandated that Mutual Fund schemes classified as 'Multi Cap Funds' need to invest a minimum of 75% of their total scheme assets in equities and equity related investments with a minimum 25% allocation to each segment: large caps, mid caps and small caps. Currently, the top 11 multi cap schemes by assets (making up 85% of total multi cap assets) hold 78% of their assets in large cap stocks, 16.6% in mid cap stocks, and only 5.4% in small cap stocks.</p><p>All Multi Cap funds have till the first week of February 2021 to meet the new requirements. While there will not be a big impact on large cap stocks, there could be a very big impact on small cap funds. The Nifty Smallcap 250 index has underperformed the Nifty 100 and the Nifty Midcap 150 index over the last year and could outperform over the next few months.</p>

Late Friday evening, the Securities and Exchange Board of India (SEBI) published a blandly titled 'Circular on Asset Allocation of Multi Cap Funds'. The implications of the circular, however, are not as bland and will result in a big shift in allocation among market cap segments in Indian mutual funds and drive trading activity over the next few months.SEBI has now mandated that Mutual Fund schemes classified as 'Multi Cap Funds' need to invest a minimum of 75% of their total scheme assets in equities and equity related investments with a minimum 25% allocation to each segment: large caps, mid caps and small caps. Currently, the top 11 multi cap schemes by assets (making up 85% of total multi cap assets) hold 78% of their assets in large cap stocks, 16.6% in mid cap stocks, and only 5.4% in small cap stocks.All Multi Cap funds have till the first week of February 2021 to meet the new requirements. While there will not be a big impact on large cap stocks, there could be a very big impact on small cap funds. The Nifty Smallcap 250 index has underperformed the Nifty 100 and the Nifty Midcap 150 index over the last year and could outperform over the next few months.

India Small Caps: Position for Outperformance Vs Large & Mid Caps

India

Central Depository Services (India) Limited (CDSL) offers financial services. The Company provides transmission of securities, dematerialisation, processing delivery, account opening, receipt instructions, holding, pledging, educational initiatives, settlements, and depository services to investors. CDSL serves customers in India.

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Central Depository Services (CDSL IN)

Computer Age Management Services IPO - Appears Fairly Priced

Computer Age Management Services (CAMS) is looking to raise up to US$200m in its Indian IPO. The company is backed by Warburg Pincus and...

Sumeet Singh

India Small Caps: Position for Outperformance Vs Large & Mid Caps

Late Friday evening, the Securities and Exchange Board of Indian

Brian Freitas

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