CMS Info Systems stocks made a debut today, December 31 2021 on both the stock exchanges. The first trade of the company’s shares on the last day of the Year 2021 was marked at Rs. 220.20 on the National Stock Exchange and at Rs. 218.50 on the Bombay Stock Exchange.
The listing was slightly positive but almost flat compared with its issue price of Rs. 216. The investors saw a minor listing gain of less than 2%. Although, the stock witnessed buying with good volume in the first hour itself. Let us look at the summary of its first trading hour.
Trading Summary – CMS Info Systems Share Price on Listing Day
CMS Info Systems stock price today, began trading on BSE at Rs. 218.50 after listing at 10 AM. After a small profit booking that took the price to the low of Rs. 215.35, buyers jumped in. The price made a high of Rs. 258 in the first hour itself after the voluminous buying.
Similarly, on the NSE, after the stock made its tepid start at Rs. 220.20, a minor profit booking took the pierce to Rs. 215.10. After marking the first hour low at that price, the up-move began. After that, the volume back buying took the prices to a high of Rs. 259 within an hour.
The total volume on the BSE in the first hour was around 20 lakhs whereas it was about 3.30 crores on the NSE.
Know the Company
CMS Info Systems is India’s leading cash management company, with a large number of ATM points and a retail pick-up point network. They provide technology solutions and services to financial institutions and e-commerce companies in India such as setting up the information systems and their maintenance.
For the year ended March 31, 2021, its total currency throughput was valued at over Rs. 9,159 billion. Its integrated suite of solutions enables it to provide a wide range of tailored services to its customers. It is debt-free and has a robust pipeline of new business opportunities.
With a strong presence in the cash management systems space, CMS Info Systems is well-placed to take advantage of the increasing trend of outsourced ATM and retail operations.
CMS Info Systems IPO – Last Day Subscription Status
If you had followed the CMS Info Systems IPO news said that the demand for the CMS Info Systems IPO was lukewarm. The subscription status on the last day showed only 1.95 times of total subscription. Out of which, qualified institutions have applied 1.98 times whereas HNIs have subscribed 1.45 times their allotted share. The retail investors seemed little more interested in the IPO and made over twice the subscriptions.
As far as the financials of the company are concerned, CMS Info System has strong numbers. While the total assets and net profit for the three consecutive financial years from FY 2019 to FY 2021 have seen consistent growth, there was a drop in its revenue for FY 2021 in comparison with FY 2020. But despite that, the company managed to mark a higher net profit.
For FY 2021, the net revenue was Rs. 13, 219 million whereas that for FY 2020 was Rs. 13,883 million. On the other hand, the net profit for FY 2021 was Rs. 1,685 whereas the same for FY 2020 was Rs. 1,347. The expenditure for FY 2020 was higher and in FY 2021, the company managed its cost well to cut down and increase the profitability.
What is the expected growth rate of CMS Info Systems’ outsourced ATM segment?
According to CMS Info Systems, their outsourced automated teller machines will be having a CAGR of 10% whereas the retail points segment is expected to grow at a CAGR of 13% by the end of FY 2027.
What was the grey market premium of CMS Info Systems on the day of its listing?
On the day of listing, the share of CMS in the grey market was trading slightly below its issue price. Meaning, the share price on the grey market was trading at a discount, which was Rs. 8 below the issue price of Rs. 216. The discount was around 3.70%.
Who were the lead managers and registrar for the CMS Info Systems IPO?
Axis Capital, DAM Capital Advisors Ltd, Jefferies India Private Limited, and JM Financial Consultants Private Limited were the lead managers for CMS Info Systems IPO.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.