Computer Age Management Services (CAMS), a key stock market infrastructure company, will see the National Stock Exchange (NSE) completely exit as its shareholder. CAMS has announced an initial public offering and the NSE is offloading 37.5 per cent of its stake via offer for sale.

According to market sources, CAMS has upsized the IPO size by 50 per cent to allow the NSE divest its holdings. Earlier, the mutual fund transfer agency was looking to offload 1.846 crore shares through the IPO.

In total, the NSE holds nearly 45 per cent stake in CAMS and it will dilute the remaining shares, too, shortly.

The NSE had bought stake in CAMS in 2014. But, SEBI said that the exchange failed in taking prior permission of the regulator and hence it was in violation of regulations of the Securities Contract Act.

Before the NSE picked up its stake in CAMS, the BSE wanted to buy the company and had approached SEBI for permission. SEBI, then headed by CB Bhave, did not give a go-ahead citing conflict of interest issues. CAMS has data of market participants who may be trading on rival platforms.

Warburg Pincus-backed Great Terrain Investment will be a key promoter of CAMS. An update on the IPO is likely to be announced on Wednesday, and the issue is likely to hit the market next Monday.

CAMS was NSE’s associate company up to February 4, 2020, NSE said in its annual report 2020.

CAMS’ draft prospectus filed with SEBI on January 9 suggested an offer for sale of 1.216 crore shares, which included an offer of up to 41.44 lakh shares by Great Terrain, up to 60.99 lakh by NSEIL, up to 9.44 lakh shares by Acsys, up to 4.87 lakh shares each by HDFC and HDB Trust.

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