The market has been abuzz with a number of IPOs launching in the past two weeks, and the next week is no different. Two of India’s reputed companies—CAMS and Chemcon Speciality Chemicals—are coming out with their respective public issues on 21 September.
Let’s take a quick look at both IPOs.
CAMS: Computer Age Management Services Ltd (CAMS) is the largest registrar and transfer agent of mutual funds in India. As of November 2019, CAMS had a 69% market share in terms of mutual fund average AUM.
Issue opens: 21 September 2020
Issue closes: 23 September 2020
Issue price band: ₹1,229–₹1,230
Lot size: 12
Click here to apply for this IPO
Chemcon Speciality Chemicals: Chemcon Speciality Chemicals is a manufacturer of pharmaceutical chemicals such as HMDS and CMIC and supplies them to some of the leading pharmaceutical companies in India. It also makes speciality chemicals used in the oilfields industry. Further, the company exports its products to countries such as the US, China, Japan, UAE, Serbia, Russia, Malaysia, and Azerbaijan.
Issue opens: 21 September 2020
Issue closes: 23 September 2020
Issue price band: ₹338–₹340
Lot size: 44
Click here to apply for this IPO
Read on to know more about both of these companies.
Computer Age Management Services Ltd
CAMS is the largest registrar and transfer agent of mutual funds in India.
According to a Crisil report published in Nov 2019, CAMS Ltd has a 69.4% share in the Indian mutual fund market. It provides technology-driven services such as transaction origination interface, transaction execution, dividend processing, intermediary empanelment, report generation, investor interface, settlement and reconciliation, compliance-related services, and brokerage computation.
The initial public offering consists of an offer for sale of 1,82,46,600 equity shares by the NSE Investments, the subsidiary of the National Stock Exchange of India. The company aims to raise ₹2,242 crore through the public issue. The price band has been fixed at ₹1,229–₹1,230.
Employees can subscribe for the shares at a discount of ₹122 per equity share. The company has reserved 1,82,500 equity shares for this purpose. The minimum quantity for bidding is 12 equity shares and in multiples of 12 shares thereafter.
When the RHP was filed on 11 September 2020, Great Terrain, an affiliate of Warburg Pincus, held 43.50% equity stake in the company, NSE Investment held 37.48%, HDFC group held 12.5%, Faering Capital India held around 4% and Acsys held 1.94%.
Click here to apply for the CAMS IPO
Chemcon Speciality Chemicals Ltd
Chemcon Speciality Chemicals is a manufacturer of pharmaceutical chemicals such as HMDS and CMIC and supplies them to some of the leading pharmaceutical companies in India. It also makes specialty chemicals used in the oilfields industry, such as calcium bromide, sodium bromide, and zinc bromide.
The company derives the majority of its revenue from its pharmaceutical products. Some of its key pharma clients include Hetero Labs, Laurus Labs, Aurobindo Pharma, Lantech Pharmaceuticals and Macleods Pharma. In the oilfield chemicals segment, it has clients such as Shree Radha Overseas, Universal Drilling Fluids, Water Systems Speciality. In 2018, it was the 8th largest manufacturer of HMDS and 2nd largest manufacturer of CMIC chemicals worldwide.
The company also exports its products to markets such as the US, China, Japan, UAE, Serbia, Russia, Malaysia, and Azerbaijan. It has a manufacturing plant at Manjusar near Vadodara in Gujarat, as well as 5 operational plants, 3 warehouses, and 2 leased warehouses.
The company plans to raise around ₹318 crore at a price band of ₹338–₹340 per share. The minimum quantity for bidding is 44 equity shares, and in multiples of 44 shares thereafter.
The IPO comprises a fresh issue of ₹165 crore and an offer for sale of ₹45 lakh equity shares by promoters Kamalkumar Rajendra Aggarwal and Naresh Vijaykumar Goyal.
Click here to apply for the Chemcon IPO
How to apply
Select the IPO you want to apply for from the list of open issues. Enter your correct UPI ID and select the investor type. The quantity should be a multiple of the lot size. If you wish to apply at the cut-off price, simply click on the checkbox next to ‘Cut-off price’.
You will receive an SMS from the NPCI confirming your bid and requesting you to accept the mandate on your UPI app. We have noticed a significant delay in UPI payment SMS/notifications from NPCI. Request you to be patient. Please ignore this message if you’ve accepted the mandate.
How to check your IPO allocation
The allotment status for both IPOs will be available on or around 28 September 2020. The allotted shares will be credited in the demat account by 30 September 2020. The status check link is not activated by the registrar yet. We will provide you the link as soon as the registrar makes it live. This may happen after the IPO is closed, i.e. after 23 September 2020.
We hope you found the article useful.
Happy investing!