Cams Share Price

CAMS overview

CAMS journey

• 1988: CAMS was founded by Mr V Shankar. It is allowed to function as Registrar and transfer agents to Asset Management Companies by the Securities and Exchange Board of India (SEBI).
• 1996: CAMS processes the first-ever allotment of Ford Escorts, launched by Ford India Pvt Ltd.
• 2000: During Y2K, it switches to domestic financial services. The HDFC Group invests in the company.
• 2006-07: CAMS enters platform-based services with their forte in technology and networking.
• 2014: The Indian Stock Exchange (NSE) takes a position in the company.
• 2019: The company converts to a Public Limited Company on 27 September.
• 2021: It launches MFCentral in collaboration with KFinTech. The company also establishes an office in GIFT City, Gujarat and launches CAMS WealthServ. This customizable digital solution eases and expedites the onboarding of High Networth Individual Investors (HNII) on the Alternative Investment Fund (AIF) and Portfolio Management Service (PMS) platform.
• 2022: It acquires a 51% share capital of Fintuple Technologies Private Limited. CAMS launches the industry's first cloud-based central record-keeping agency platform to serve the National Pension System.

CAMS - Initial Public Offer (IPO)

CAMS products

• Mutual funds
• Reconciliations
• Loans against mutual funds
• Payments
• AIF & PMS
• Account aggregators
• Central recordkeeping agencies
• KYC services
• Insurance companies
• Innovation sandboxes

CAMS business highlights

• Prior to the IPO, the company raised ₹600 crore from 35 anchor investors.
• CAMS-serviced AuM (Assets under Management) reached a new high of ₹22 lakh crore, representing nearly 69% of the Indian mutual fund industry.
• CAMS facilitates all of India's top 5 asset management companies.
• CAMS Financial Information Services Private Limited, its wholly-owned subsidiary, has been granted an account aggregator license by the RBI and is in the process of establishing the infrastructure for this. More than 15 businesses have signed up for its FinServ AA services.
• The PFRDA has granted a certificate of registration as a Central Record Keeping Agency (CRA) for the NPS (National Pension System), and platform development is underway.
• CAMS Payment Services Private Limited (CAMSPay), a subsidiary, has been formed for payment aggregation operations.
• According to the March 2021 MF Investor Satisfaction Survey, 95% of investors are satisfied with the services provided by CAMS.
• BitSight examined its cyber security posture and rated it 800 in 2020, the highest level in the BFSI industry.
• CAMS received UIDAI approval to provide OTP-based Aadhaar eKYC to MF investors to facilitate digital onboarding.
• The myCAMS mobile app for MF investors has reached the 40 lakh registered user mark.
• edge360 mobile app is now available to help distributors serve investors on the go.

CAMS performance highlights

CAMS management

• Managing Director: Anuj Kumar
• Chief Platform Officer: Ravi Kethana
• Chief Operating Officer: Syed Hassan
• Chief Financial Officer: Ram Charan Sesharaman
• Head of New Business: N. Ravi Kiran
• Chief Executive Officer - CAMS Payment Services Pvt. Ltd: Vasanth Emmanuel Jeyapaul
• Chief Executive Officer - CAMSRep: Vivek Bengani
• Chief Human Resources Officer: Vinodh Chelambathodi
• Chief Product Officer and Business Head - New Platforms: Soumendu Shekhar Ganguly
• Chief Business Officer – CAMSfinserv: Tejinder Pal Singh Manchanda
• Deputy Chief Process Officer: Varadarajan E S
• Executive Vice President: Kamala Radhakrishnan
• Senior Vice President – Risk: Jeyaraman K
• Senior Vice President – Business Development: Prabal Nag
• Senior Vice President - Operations: Karthikeyan S
• Senior Vice President – Technology: Sundaravadivelan S
• Senior Vice President – Legal & Company Secretary: Manikandan G
• Vice President and Head HR & I&FM: Jemima Ravithilagan
• Vice President – Compliance Officer: Karthick Babu S V
• Vice President - Chief Information Security Officer (CISO): Meenakshisundaram

Indian finance and investment industry overview

Size of the Indian finance and investment industry

• The Indian financial services sector was estimated to be worth USD 500 billion in 2021, with the FinTech market accounting for USD 31 billion of that total.
• The FinTech sector is predicted to grow at a compound annual growth rate of 22% over the next five years, and it now has the world's third-largest FinTech ecosystem.
• There are currently over 2,000 DPIIT-recognised Financial Technology (FinTech) startups in India, and this number is rapidly increasing.
• By 2023, India's FinTech sector is predicted to have USD 1 trillion in assets under management (AUM) and USD 200 billion in revenue.

CAMS growth prospects

• CAMS serves 4 out of the 5 largest mutual funds and 9 of the 15 top MFs, as of July 31, 2022.
• CAMS income has steadily increased from ₹372 crores in March 2015 to ₹674 crores by March 2020, representing a 16.3% CAGR. CAMS earnings have increased from ₹70 crores in March 2015 to ₹219 crores in March 2021, representing a very good CAGR of 21%.
• The company is debt-free and has a zero promoter pledge. Institutional investors include Goldman Sachs, SBI Funds Management, and HDFC Asset Management Co.

Risks and concerns

• Any future revenue and profit are essentially determined by the growth, value and composition of the AuM of their clients' mutual funds. This means that the company is dependent on the industry.
• In the future, SEBI may control the fees they charge for some of their services, thus impacting the operations and revenues of CAMS.
• Because CAMS places a strong emphasis on process and risk management, any failure in information technology systems or data security breaches would have an adverse impact on the company.

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