CMS Info Systems IPO - 7 Things to Know
CMS Info Systems Ltd in one of India’s top cash management companies and covers one of the largest networks of ATM points and retail pick-up points. CMS handles the entire technology and support backbone for banks and financial institutions to efficiently manage their cash points across India.
Seven things to know about the CMS Info Systems Ltd IPO
1) CMS Info Systems basically operates in 3 business segments. Firstly, it handles cash management services on behalf of financial institutions and banks. Secondly, CMS also handles banking automation and control systems infrastructure for the financial institutions. Lastly, CMS handles card issue and card personalization for banks.
2) CMS has been a closely held company for a long time, owned by Baring Private Equity. It brings to the table, key advantages like a pan India network of nearly 4,000 cash vans and 238 branches. It has over the years built long-standing and deep relationships with the financial institutions, which helps them maintain leadership.
3) The CMS Info System IPO opens on 21-December and closes for subscription on 23-December. The basis of allotment will be finalized on 28-December while the refunds will be initiated on 29-December. The demat credits to eligible shareholders will happen on 30-December while the actual listing on NSE and BSE will be done on 31-December.
4) The IPO will entirely be an offer for sale worth Rs.1,100 crore in the price band of Rs.205 to Rs.216. The company proposes to offer 5,09,25,925 shares as part of the offer for sale which at the upper band of Rs.216 would be worth Rs.1,100 crore. The entire OFS shares will be offered by Sion Investments Pte Ltd, an arm of Barings Private Equity.
5) In terms of financials, the company reported revenues of Rs.1,322 crore for fiscal year FY21, showing a steady increase in revenues over the last 2 years. The company made a net profit of Rs.169 crore in FY21, implying net margins of 12.8%. The company is cash rich and has been consistently profit making over the years.
6) Being an offer for sale, there will be no fresh funds coming into the company. The main purpose of the IPO is to enable Sion Investments, an arm of Barings, to monetize its stake in CMS Info Systems partially. The total holdings of Barings post the IPO will go down from 100% to 65.59%, while public holdings will go up proportionately.
7) The CMS Info Systems IPO will be lead managed by Axis Capital, DAM Capital (formerly IDFC Securities), Jefferies India and JM Financial Consultants. The registrar to the issue will be Link Intime India Private Limited.
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