CAMS FIS, incorporated as a wholly owned-subsidiary, provides a platform service that allows consenting customers’ financial assets data to be shared with authorized Financial Information Users (FIUs) from Financial Information Providers (FIPs). For financial year 2023-24, CAMS FIS reported a turnover of Rs 68.01 lakh, up from Rs 2.66 lakh in FY23 and Rs 0.25 lakh in FY22.
The primary objective of additional investment is to maintain the minimum net worth to be maintained at all times as per aggregator regulation of Rs 2 crore. Accordingly, it is proposed to infuse further capital by the company within December 2024.
The investment will be made in one or more tranches and first tranche of Rs 4 crore will be completed by 31 December 2024. Separate filings will be done when additional tranches are made.
The investment is classified as a related party transaction, but the company clarified that the transaction is at arm’s length. CAMS holds shares in CAMS FIS, but apart from this, it has no other interest in the subsidiary.
CAMS, a leading financial infrastructure provider, offers a wide range of services to the asset management, BFSI, and alternative investment sectors. As India's largest registrar and transfer agent for mutual funds with a market share of over 68%, CAMS serves many of the largest mutual funds in the country. Additionally, the company provides comprehensive solutions for alternative investment funds, portfolio managers, KYC, payments, insurance, and pension schemes. CAMS has also expanded its capabilities through strategic acquisitions in data science, AI, and digital transformation.
The company’s consolidated net profit surged 44.2% to Rs 120.83 crore in Q2 FY25 as compared to Rs 83.78 crore posted in Q2 FY24. Revenue from operations jumped 32.8% YoY to Rs 365.17 in the quarter ended 30 September 2024.
The scrip had advanced 1.85% to end at Rs 5,040.85 on the BSE on Friday.