Computer Age Management Services Limited (CAMS) which is tapping 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 opens on Monday the 21st of September and closes on Wednesday the 23rd of September. The price band is Rs 1,238 to Rs 1,240. Looking at the recent success of issues from Happiest Mind, Rossari Biotech and the yet to be listed Route Mobile, this issue too would receive excellent response.

The company is a duopoly and its primary business is RTA agent for the mutual fund industry. It has a market share of about 70% and it caters to four of the top five mutual funds in the country.

The full list of anchor investors with their allotment is given below: –

Happiest Mind Technologies Limited, a company promoted by Ashok Soota, formerly of Mindtree had a dream debut when its shares listed on Friday the 17th of September. Shares which were issued in a price band of Rs 165-166, debuted at Rs 350 and closed at Rs 371, a gain of Rs 205 or 123.49%.

The company had entered the capital markets with its fresh issue of Rs 110 crs and an offer for sale of 3.566 cr shares. The issue had opened on Monday the 7th of September and closed on Wednesday the 9th of September.

The company allotted 1,90,30,541 equity shares to 25 Anchor investors comprising of 38 entities. The highest allocation of 10,84,320 equity shares was made to Government of Singapore. This amounts to 5.70% of the issue size. The next highest allocation was made to 13 investors who have each been allotted 9,63,810 shares or 5.06% of the anchor allocation.

The issue size was roughly Rs 702 crs from the fresh issue and offer for sale components combined. The company had offered shares at a PE multiple of 30.8 to 31 times its diluted earnings of Rs 5.36 for the year ended March 2020.

The discovered price on BSE was Rs 351 while it was Rs 350 on NSE. The traded volume on BSE at the discovered price was Rs 2.82 lac shares while it was 57.75 lac shares at NSE. The opening prices were the day’s low on both the exchanges. The high of the day was Rs 395 on BSE while it was Rs 394.95 on NSE. The close of the day was Rs 371 on BSE, a gain of Rs 205 or 123.49%, while it was Rs 370.95 or 123.46% on NSE. The weighted average of the day’s trade was Rs 375.26 on BSE and Rs 373.27 on NSE.

The traded volume on BSE was 109.73 lacs while it was 484.10 lacs on NSE making a total of 593.83 lac shares. This total traded volume was 1.4 times the IPO size of 422.9 lac shares and 2.55 times the non-anchor portion of 232.95 lac shares. Delivery volume on the two exchanges combined was 216.30 lac shares which was 36.42% of the traded volume. It was 51.15% of the IPO size and 92.99% of the non-anchor portion. This number is very significant and implies that almost everybody who was allotted shares in the IPO irrespective of whether he was in the QIB, HNI or Retail category has virtually sold out. There was just one buyer whose name was mentioned in the bulk trades category. Plutus Wealth Management LLP bought 10 lac shares at the discovered price of Rs 350 on NSE.

This has happened after the issue of Rossari Biotech where there was a similar delivery percentage. Whether this is a new normal or the trend one will have to see in some more issues before deciding.

The share has done better than expected and beaten all possible expectations. Good show and let us see what the share has in store for us going forward.