CMS Info Systems IPO: The initial public offering of cash management firm CMS Info Systems Ltd opened a day earlier. The IPO of CMS Info Systems got 40 per cent subscription on the first day of bidding, which received a good response from the investors, especially the retail segment. The CMS Info Systems IPO has now reached its second day of bidding, and it remains to be seen how it performs on Wednesday, December 22. The offer will close after a three-day bidding process on Thursday. CMS Info Systems Limited is India’s largest Cash Management Company by number of ATM Points and Retail Pick-up Points as on 31st March, 2021.
The firm is looking to raise Rs 1,100 crore through its initial public offering, with 5.093 – 5.366 crore shares for sale. The issue, which opened on Tuesday, December 21, is entirely an offer for sale. it means that CMS Info Systems There will be no income from the IPO. Till Tuesday, 40 per cent of the issue was booked, with support from the category of retail investors, who had invested in 79 per cent of the shares set aside for them. According to data from the Bombay Stock Exchange, or BSE, only 1 per cent of bookings took place in the non-institutional buyers category. Qualified institutional buyers have not yet placed any bids for the issue.
The company has notified that the price band of CMS Info Systems IPO is Rs 205 to Rs 216 per equity share.
The issue of Rs 1,100 crore is offered for sale by outright sale to the promoter Sion
Investment Holdings Pte. Ltd., which will receive all proceeds from the issue. The proceeds from the OFS will be used by the promoters to make an offer for sale of equity shares up to a total of Rs 1,100 crore and to reap the benefits of listing equity shares on stock exchanges. The lot size of the offer is 69, which means a bidder can buy a minimum of 69 shares and I is a multiple of 69.
The promoter currently holds 100 per cent stake in the company. After the public offer, it will come down to 65.59 per cent.
CMS Info Systems Limited is expected to make its stock market debut on December 31. On Wednesday, the second day of bidding, unlisted shares of CMS Info Systems IPO were trading at Rs 35, which is just 16 per cent of the total. Upper price band of Rs 216. The low gray market premium of the CMS Info Systems IPO later this month indicated a weak listing for the issue.
Analysts at Anand Rathi were positive about the CMS Info Systems IPO for long-term investors. “We see limited upside to growth
Future. While evaluating on the financial front at the upper end of
Valuation seems reasonable considering IPO price band all
The above scenario, we assign it a “Subscription- Long term” rating
IPO,” the brokerage house said in a note.
Meanwhile, researchers at HEM Securities gave a subscribe rating to the public issue. “The company is launching the issue at a price band of 19 times the P/E multiple of Rs 205-216 per share based on FY 2011 EPS. The company being the leading player in consolidating the market with strong fundamentals is an integrated trading platform offering a wide range of services and products. In addition, the company has track
Record of strong productivity and operational excellence with experienced and highly qualified management. That’s why we recommend “subscribing” to this issue,” it said.
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