CMS Info Systems IPO: The public issue of CMS Info Systems is scheduled to close on Thursday, December 23 and today is the last chance for investors to invest in its shares. The CMS Info Systems IPO opened to the public two days ago and was subscribed 52 percent by the end of the second day of its issue. This was mainly supported by the retail investor category. CMS Info Systems is India’s largest Cash Management Company by number of ATM Points and Retail Pick-up Points as on 31st March, 2021. The company is looking to raise Rs 1,100 crore through its Initial Public Offering with ranges 5.093 – 5.366. crore shares for sale
By the end of the second day of bidding, CMS Info Systems IPO was subscribed 52 per cent, where retail investors subscribed 1.02 times more than the share earmarked for them. In contrast, non-institutional buyers bid for only 4 per cent of the shares reserved for them, while qualified institutional buyers had not yet bid for the offer.
The company has notified that the price band of CMS Info Systems IPO is Rs 205 to Rs 216 per equity share. Ahead of the opening of the public issue, the company said it has raised Rs 330 crore through anchor booking from the allotment of 1,52,77,777 shares.
The Rs 1,100-crore issue is an offer for sale through outright sale of promoter Sion Investment Holdings Pte. Ltd., which will receive all proceeds from the issue. The promoter currently holds 100 per cent stake in the company. After the public offer, it will come down to 65.59 per cent.
The unlisted shares of CMS Info Systems IPO were fetching a premium of Rs 35 on Thursday, which is just 16 per cent of the upper price band of Rs 216. The low gray market premium of the CMS Info Systems IPO indicated a weak listing for the issue. later this month.
CMS Info Systems Limited caters to a broad set of outsourcing requirements for banks, financial institutions, organized retail and e-commerce companies in India. They have an all India fleet of 3,965 cash vans and 238 . network of
Branches and offices in India by August 31, 2021. The company’s services help customers increase the velocity of cash through the cash cycle by helping them meet their outsourcing needs and increase the speed with which they handle cash by automating and reducing duplication. Cash processing and turnaround.
Most of the broking houses have given a positive rating to the IPO of CMS Info Systems for long term subscription. “The company plans to expand further into three”
New business areas that include remote monitoring outside ATMs
and banking sector, end-to-end currency management and financial
delivery of services. The financial position of the company has been sound and it has
Posted Revenue/PAT CAGR of 7 per cent/32 per cent as compared to FY19-21. From a long-term perspective, we have a positive outlook on the company.
Angel One said in a note, “CMS at the high end of the price band will trade at a P/E multiple of 11.4 of 19x FY21 EPS which will be a slight premium to SIS. Also CMS is primarily the banking sector for most of its revenue. and high customer concentration with 44.6 per cent revenue with top three customers for the first five months of FY 2022. Also the company’s business will be impacted if we see a third covid wave in India. Dependence on one sector We have a neutral recommendation on IPOs, given the high customer concentration and the potential impact on business due to the third COVID wave.”
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