Which is the better investment option: PPF or mutual funds?
by 5paisa Research Team
29 Sep 2020
IPO Details
- Open Date 21-Dec-21
- Close Date 23-Dec-21
- Lot Size 69
- IPO Size ₹ 1,100 Cr
- IPO Price Range ₹ 205 to ₹216
- Min Investment ₹ 14,145
- Listing Exchange NSE, BSE
- Basis of Allotment 28-Dec-21
- Refunds 29-Dec-21
- Credit to Demat Account 30-Dec-21
- Listing Date 31-Dec-21
CMS Info Systems Ltd IPO Subscription Status
| Category | Subscription Status |
|---|---|
| Qualified Institutional (QIB) | 1.98 Times |
| Non-Institutional (NII) | 1.45 Times |
| Retail Individual | 2.15 Times |
| Total | 1.95 Times |
CMS Info System IPO Subscription Details (Day by Day)
| Date | QIB | NII | Retail | Total |
|---|---|---|---|---|
| December 21, 2021 17:00 | 0.00x | 0.01x | 0.79x | 0.40x |
| December 22, 2021 17:00 | 0.00x | 0.04x | 1.02x | 0.52x |
| December 23, 2021 17:00 | 1.98x | 1.45x | 2.15x | 1.95x |
IPO Synopsis
CMS Info Systems to raise Rs 1,100 crore from the public issue. The issue consists entirely of an offer for sale Sion Investment Holdings Pte, an affiliate of Baring Private Equity Asia.
The price band for the issue is fixed at Rs. 205 - Rs. 216 per share. The issue will open on 21st December and effectively close on 23rd December.
The minimum bid size is 69 shares (1 lot) and requires a minimum investment of Rs. 14904. The maximum a retail investor can apply for is 13 lots which requires an investment of Rs. 1,93,752.
The face value of each share is Rs. 10.
50% of the offer is reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining for non-institutional investors.
Axis Capital, Dam Capital Advisors, Jefferies India and JM Financial are the book running lead managers to the issue.
Objective of the Issue
The net proceeds from the issue will be utilised:
• To carry out the offer for sale of equity shares by the promoter selling shareholder aggregating up to Rs. 1,100 crores
• To achieve the benefits of listing the Equity Shares on the Stock Exchanges
About CMS Info Systems Ltd
CMS offers ATM and cash management, ATM installation, maintenance and card personalisation services. Over the past decade, the company has been owned first by Blackstone, in 2008, and in 2015, it was taken over by Baring, which bought the company for about Rs. 2,000 crores.
The firm operates its business in three segments:
1. Cash management services which include
- - end-to-end ATM replenishment services
- - cash pick-up and delivery; network cash management and verification services
- - Inter-branch and currency chest cash-in-transit services for banks.
- - On average, CMS manages Rs. 5,000 crore of cash a day in India.
2. Managed services, which include
- - banking automation product sales and service sale
- - end-to-end brown label ATM and managed services for banks
- - common control systems and multi-vendor software solutions remote monitoring for ATMs and bank branches
3. Others, which include
- - end-to-end financial cards issuance and management for banks
- - card personalization services
The firm provided services to its customers though pan-India fleet of over 3,911 cash vans, 224 branches and offices and it serviced 1,33,458 business points.
The cash management business is route-based in nature with 78.11% of revenue in FY21 being generated from activities while the managed services business on the other hand is largely recurring in nature with 52.45% of revenue in FY21 being generated from long-term contracts.
The integrated service and product offering has enabled the firm to shift the business mix towards providing more integrated end-to-end services for the customers, offering the customers lower price, more reliable service, improved advance planning of routes, faster reconciliation and improved days sales outstanding.
CMS Info Systems Ltd Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 1,306.09 | 1,383.24 | 1,146.16 |
| EBITDA | 309.44 | 258.96 | 211.09 |
| PAT | 168.52 | 134.71 | 96.14 |
| EPS (basic in Rs.) | 11.39 | 9.1 | 6.5 |
| ROE | 17% | 16% | 13% |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 1,611.81 | 1,332.74 | 1,092.70 |
| Share Capital | 148.00 | 148.00 | 148.00 |
| Total Borrowings | 0.00 | 0.00 | 0.00 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 185.44 | 214.16 | 101.78 |
| Net cash from / (used in) investing activities | -149.34 | -119.44 | 6.19 |
| Net cash flow from / (used in) financing activities | -61.72 | -57.62 | -52.40 |
| Net increase (decrease) in cash and cash equivalents | -25.62 | 37.10 | 55.58 |
Peer Comparison
| Name of the company | Total Revenue (in Rs. crores) | Basic EPS | NAV Rs. per share | PE | RoNW % |
|---|---|---|---|---|---|
| CMS Info Systems | 1,321.92 | 11.39 | 66.52 | NA | 17.12% |
| SIS Limited | 9,605.10 | 24.85 | 123.45 | 19.1 | 20.06% |
Key Points of CMS Info Systems IPO are:
IPO Key Points
-
Strengths:
• Leading player in a consolidating market with strong fundamentals
• Pan-India footprint with deep penetration in growing markets
• Longstanding customer relationships leading to increased business opportunities
• Integrated business platform offering a broad range of services and products
• Systems and processes to manage and scale an operationally complex business
• Track record of strong productivity and operational excellence -
Risks:
• Decrease in the availability or use of cash as the predominant mode of payment in India
• High dependency on banking sector, thus, any adverse development within Indian banks that affects their utilisation of and demand for cash management services or their deployment or utilisation of ATMs will affect the business operations
• A substantial portion of its revenue from a limited number of customers
• Significant expenses in relation to services procured from third parties to maintain the ability to competitively price services, maintain or increase the profitability and results of operations
• Repetition of events similar to demonetization will have immediate effect on the business
• Failures of its information technology system
• Business is subject to the risk of criminal attacks of various types by third parties, including armed robbery, theft and fraud.
Valuation and Recommendation
Evaluating the IPO with the upper price band of Rs. 216, CMS Info Systems Limited commands earnings of 18.96x for FY21. In terms of PE multiple, the company is at par with its listed peer, SIS Limited, which is trading at FY21 PE multiple of 18.83x. After assessing the scale of the business, company’s leadership position, nationwide presence, strong relationships with customers and plans for strategic acquisitions of the business, we recommend “Subscribe” to the issue with a long-term perspective.
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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IPO FAQs
What is the minimum lot size and investment required for the CMS Info Systems IPO?
The minimum lot size for the issue is 69 shares and the investment required ranges between Rs. 14145 to 14904 for one lot.
What is the price band of the IPO?
The price band of the CMS Info Systems IPO lies between the range of Rs 205 to Rs 216
When does the CMS Info Systems issue open and close?
The CMS Info System issue opens on Dec 21, 2021 and closes on Dec 23, 2021.
What is the size of CMS Info Systems IPO issue?
The IPO consists entirely of an offer for sale of up to Rs. 2,000 crores by Sion Investment Holdings Pte.
Who are the promoters/key personnels of CMS Info Systems?
The promoter of CMS Info System is Sion Investment Holdings Pte. Limited.
What is the allotment date of CMS Info Systems?
The CMS Info Systems shares will be allotted on Dec 30, 2021.
What is the CMS Info Systems listing date?
The CMS Info Systems listing date is Dec 31, 2021 for the issue.
Who are the book runners for CMS Info Systems IPO?
Axis Capital, Dam Capital Advisors, Jefferies India and JM Financial are the book running lead managers to the issue.
What is the objective of the issue?
The proceeds will be used for
• To carry out the offer for sale of equity shares by the promoter selling shareholder aggregating up to Rs. 1,100 crores
• To achieve the benefits of listing the Equity Shares on the Stock Exchanges
How to apply for the CMS Info Systems IPO?
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
Contact Details of CMS Info Systems Ltd IPO
Contact Information
CMS Info Systems Limited
T-151, 5th Floor, Sector-11, Tower No. 10
Railway Station Complex, CBD Belapur, Navi Mumbai,
Thane – 400614
Phone: +91 22 4889 7400
Email: cms.ipo@cms.com
Website: http://www.cms.com/
CMS Info Systems Ltd IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: cmsinfo.ipo@linkintime.co.in
Website: https://linkintime.co.in/
CMS Info Systems Ltd IPO Lead Manager
Axis Capital Limited
DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
Jefferies India Private Limited
JM Financial Consultants Private Limited
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