NSE-led shareholders likely to exit CAMS

NSE has mandated investment bank Rothschild to look for buyers.

The National Stock Exchange of India is looking to sell its 45 per cent stake in mutual funds transfer agency Computer Age Management Services ahead of NSE’s proposed initial public offering, said multiple sources aware of the development.

Other shareholders, too, are expected to join in to sell out entirely or at least a controlling stake in Computer Age Management Services (CAMS), valuing it at Rs 2,000 crore.

Initial talks with global PE funds such as Blackstone and Carlyle, and firms like Bank of NY Mellon have already begun, sources said.

NSE has mandated investment bank Rothschild to look for buyers.

The move comes almost four years after the stock exchange picked up 45 per cent stake in CAMS from outgoing private equity investor Advent International for around Rs 650 crore in December 2013.

Chennai-headquartered CAMS provides registrar and transfer agency services to mutual funds, serving over 60 per cent of assets of the industry across 15 mutual funds. It is co-owned by NSE subsidiary NSE Strategic Investment Corporation Limited, financial service conglomerate HDFC Group and founding promoter Acsys.

Emailed queries sent to spokespersons of CAMS, NSE, HDFC, Acsys, Blackstone and Carlyle did not elicit any response as of press time on Monday. Bank of NY Mellon could not be reached for immediate comment.

Last year, there were news reports that market regulator Securities and Exchanges Board of India (Sebi) was looking into NSE’s stake purchase in CAMS along with some other deals. These investments will be termed valid only if the regulator determines that the investment was made in compliance with Stock Exchange and Clearing Corporation (SECC) regulations.

According to the draft offer document filed by NSE ahead of its initial public offering (IPO), Sebi has made a preliminary obser vation that through these in vestments, NSE had engaged in activities not incidental to stock exchange activities, as prescribed under Regulation 41(3) of the SECC regulations, news reports said.

«To ensure there are no technical road blocks, NSE might be looking at selling off these stakes,» said a person with knowledge of the stock exchange’s plans.

Besides MFs, CAMS also provides technology-enabled services and KYC services to alter native investment funds, banks, NBFCs, and insurance companies.

It competes with Karvy Computershare, Link Intime, Big Share Services and Integrated Enterprises in the country.

Share registry companies have seen robust demand from investors both strategic as well as financial, thanks to the growth in asset management industry in the recent years.

Last month, global PE fund General Atlantic picked up a 74 per cent stake in India’s largest share registry company Karvy Computershare for Rs 1,500 crore.

An official following the developments, however, said this is not a high margin business.

«Someone has to step in and morph its (CAMS’) focus,» the person said.»It was also not a grand exit for Advent as well.»

The company is believed to have clocked Rs 200 crore EBITDA in 2016-17.

Добавить комментарий