Thread by @sidalok7

Read this book at the time of #CAMS #IPO.
A brilliant read to know about the #growth trajectory of the #company & why it's only starting.

@YMehta_ @finthusiasts @nid_rockz @manurishiguptha @MadrasMobile @MarketScientist
@AnyBodyCanFly @ipo_mantra

Thread coming.👇

Foreword by- Mr. Deepak Parekh, Chairman @HomeLoansByHDFC

He writes about India's #economy post #Liberalization & how #companies that have come up have one thing in common- #knowledge.

2/n

#CAMS began as a #software development & #computer education firm, moved to share registry services handling #IPO's, later became a Registrar & Transfer Agent (#RTA). It now also handles documentation requirements in #banking, #insurance & #microfinance.

3/n

A business with no scope of error, #CAMS has emerged as a market leader & has also handled its operations with speed.

Founded by V Shankar, #CAMS is a story of tough #competition, surviving on hard work & #merit, and of providing a cutting edge #technology.

4/n

20th #century saw #financial industry taking shape. The GoI passed a co-operative credit Societies Act.
In 1906, a big #British bank, Arbuthnot & Co., collapsed leading to lack of confidence in British #businesses & the first bank run by #Indians, #IndianBank was set up.

5/n

In 1947, 5 recognised exchanges- #Bombay, #Ahmedabad, #Calcutta, #Madras & #Delhi.

#CCI was set up. New companies were allowed to issue shares at par.

Relaxing of controls & offering flexibility in 1980s. PM Rajiv Gandhi's digital shake-up led to the birth of #IT Sector.

6/n

V Shankar started his career at @PONDS. #Data processing or #IT, attracted him the most. His wife worked at Computer Maintenance Corporation (#CMC). CMC can be said as a precursor of all IT #companies in #India.

7/n

Swathi Enterprises was born in 1987. It focused on data entry & software development for small enterprises. They were also into horoscope generation. They decided to develop ERP software. Indira Viswanathan was the first employee. (Pic)

8/n

#Financial sector was undergoing a #transformation in 1980-1990s. #Market #capitalisation rose from ₹68 billion in 1980 to ₹550 #billion in 1989. (Pic)

9/n

@reliancegroup came into picture. "It witnessed #growth rates unprecedented in the #Indian #industry & seldom anywhere in the #world." Its #assets grew 60%/year, #sales 30%/year & #profits 50%/year throughout 1980s. #Share #prices grew from ₹10 in 1977 to ₹186 in 1982.

10/n

In 1982, #BSE had to be shut down for 3 days. Bears tried to hammer the #share #prices but faltered miserably.

In 1984, the #AGM was held at the Cooperage Football Grounds in Bombay. It's significant because until now, #retail investors were unknown of the share #markets.

11/n

In 1987, the #company planned a #rights #issue (G series) of its #shares, but seeing the demand had to hire #agents to meet #local requirements of #investors. #CAMS was contracted for #Madras #operations. (Pic)

12/n

#SEBI (to regulate the #securities #market in the #country) & #NSE (carrying a transactional #speed of two orders/second) were set up in 1989.

#SENSEX between April 1991 & April 1992 gave a return of 274%. #HarshadMehta #scam broke out.

13/n

An #IPO wave began in 1993 and lasted till 1996. A #record 1597 #companies hit the #market. #CAMS flourished alongwith them. It not only handled IPOs but also provided #RTA facilities. It handled S&S Switchgears, #AshokLeyland, #Wockhardt, #IPCALabs, #Ford #Escort, etc.

14/n

#NSDL was set up to handle the #storage of #security #instruments in a #dematerialised #form.

#First #Mutualfund was set up in 1963- #UTI. Kothari Pioneer #MF was the first #private #sector MF. By 1996, the #industry had grown to ₹81,000 crore.

15/n

Alliance Capital was their 1st customer.

It was their excellence in #software that gave #CAMS an edge. They rewrote how records were stored & retrieved.

Continuing with change, #DOS changed to @Windows. Laser printers came. #FoxPro migrated to #Windows to @Oracle.

16/n

#JV with Alliance Capital. New company- #Acsys. Majorly 3 tasks- tracking #brokerage #commissions, a single folio a/c for the #investor, record-keeping for #AMCs.
At that time, details of how much #money has each investor put in could easily be tracked, without #KYC.

17/n

#Revenues of #Indian #IT #sector ballooned from $197 million in 1990 to $8000 million in 2000. A total of 3.4 lacs #professionals were employed across the #country. Gated residential communities began coming up. #Sales of Consumer Durables boomed.

18/n

#CAMS handled allotment certificates, dividend payouts, further investments, redemptions, etc.

@HDFC_Bank bought a stake. Completely exited the equity space. Expanded to over 100 cities. 4000+ employees by 2008 from 700 in 2001.

19/n

On #customers-

Putting customer first. #Accountability, #integrity, #reliability & #transperancy are their #core values. (Pic)

20/n

Since its inception #CAMS has focused on- cutting edge #technology & it's #people.
"#Recruit right people & provide an #environment for their retention with the #company."
Every year #Family Day is celebrated. #Outstation trips are organised. #Gift #coupons are issued.

21/n

On #diversification-
"Whatever #insurance #cos. can outsource & whatever can be done across cos. should be our area of #service."

#CAMSRep was set up.

The #company reduced the time required to generate a #policy document after receiving the application & validation.

22/n

While competition required 8-10 days, #CAMS processed in 24-48 hours.

It identifies agents for training, allocates them different training centres & keeps tab on them.

Became only 1 out of 5 companies to be issued #insurance repositories license by #IRDA.

23/n

Finally in 2013, #NSE bought a stake in #CAMS.

On #future-
Tried to woo young investors through @Facebook.
They are a Knowledge Process Outsourcing (#KPO) company with consulting knowledge. Domestically #BPO facilities to #banking & #insurance platforms.

24/n

This book is a perfect case study for budding #Entrepreneurs.
It's not only #ideas that make a co. successful, but evolving with a tryst for #innovation & #customer first attitude makes it stand out in the crowd.

Recent #CAMS #IPO was superhit.
Holding it in #portfolio.

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