Shares of Computer Age Management Services Limited (CAMS) listed on BSE Limited on Thursday the 1st of October. The discovered price was Rs 1,518 and 19,38,274 shares were traded at this price. The high of the day was Rs 1,550 and the low was Rs 1,306.20. The close was Rs 1,401.60, a gain of Rs 171.60 or 13.95%.
Earlier CAMS which had tapped the capital markets with an offer for sale of 1,82,46,600 completed allotment to anchor investors. The company allotted 54,19,230 equity shares to 35 anchor investors comprising of 52 entities. The top allocation was made to Smallcap World Fund who was allotted 4,87,800 equity shares or 9% of the anchor book. The next highest allocation was of 2,43,900 shares or 4.5% of the anchor book equally to 12 investors. This effectively meant that 13 investors were allotted 63% of the anchor book.
The issue had opened on Monday the 21st of September and closed on Wednesday the 23rd of September. The price band was Rs 1,228 to Rs 1,230. The issue was oversubscribed 46.99 times overall with QIB portion subscribed 73.18 times, HNI portion 111.85 times and Retail portion subscribed 5.55 times. The employee portion was subscribed 1.16 times. The cost of funding for the leveraged HNI was between Rs 185-198, which means that he is losing money at the present price.
The traded volume was 131.80 lac shares which was 0.72 times the IPO size of 182.46 lac shares and 1.03 times the non-anchor size. Delivery was 70.90 lac shares which was 53.80% of the traded volume and 38.88% of IPO size. It was 55.28% of the non-anchor portion which means there is another 57 lac shares to be delivered. This could cause pressure on the share price in the short term. The weighted average of the day’s trade was Rs 1,463.65 which was way above the closing price of Rs 1,401.60.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 1518.00 | 1550.00 | 1306.20 | 1401.60 | 171.60 | 13.95 | 1463.65 | 13180793 | 7090806 | 53.80 |
| Total | 13180793 | 7090806 | 53.80 |
There was buying of 32.48 lac shares by institutional investors such as Canara Robeco, Nomura India, Goldman Sachs, Smallcap World Fund (an anchor investor as well) and Fidelity. With marquee investors picking up almost 43% of the delivery at an average price of Rs 1,482.31, a lot of the selling pressure was absorbed. Those who have not sold as yet could be under Monday onwards.
This IPO was well received and had a decent premium attributed to it as well. When money making becomes too easy, the law of averages catches up and sure shot calculation go awry. This is life and also applies in the markets.
Good issue but listing gains at end of day are capped at 13.95%.
