CMS Info Systems To Debut on Dalal Street Today

31 December 2021
3 mins read
CMS Info Systems To Debut on Dalal Street Today

CMS Info Systems, one of India’s top cash management firms and the last to go public in 2021, is unlikely to generate the same kind of excitement as HP Adhesives and Supriya Lifescience, which went public earlier this week.

Given the modest initial public offering subscription data, tepid interest in the grey market, and fears regarding a third pandemic wave, experts believe the company’s shares might list at around the issue price of Rs 216.

During the days of December 21-23, CMS Info Systems’ initial public offering was oversubscribed 1.95 times. Retail investors received 2.15 times their quota, while eligible institutional purchasers received 1.98 times their quota. Non-institutional investors placed bids for 1.45 times the number of shares set up for them.

The promoter Sion Investment Holdings offered the Rs 1,100 crore IPO as a comprehensive offer for sale at Rs 216 per share. “Based on subscriber numbers and grey market premium, CMS Info Systems is projected to list around its issue price,” the analysts said.

Although the issue was favourably priced, one analyst predicts a flat listing for CMS Info Systems, while another predicts a lower single-digit or muted listing due to weaker-than-expected subscriber demand during the IPO.

The trend “towards cashless transactions and growing use of digital money,” which might jeopardize long-term development objectives, could be a problem for the cash management organisation. New investors were particularly concerned about registering for an IPO that was a “100% offer for sale,” according to analysts.

According to IPO Watch and IPO Central, CMS Info shares traded on the grey market at a flat 4.6 percent (Rs 10) premium over the issue price. As of March 2021, it was India’s biggest cash management firm in terms of ATM locations and retail pick-up locations. Based on the number of ATM points as of FY21, it is also one of the biggest ATM cash handling firms in the world.

Further Analysis

Here are a few of the advantages of this business.

  • In terms of ATMs and retail pick-up sites, the company is India’s largest cash management supplier as of March 2021.
  • Customers have been loyal to the firm for a long time, and future business opportunities exist.
  • The organisation has had sustained revenue growth over the last three years. The company’s profits increased from Rs 1,159.3 crores in 2019 to Rs 1,321.9 crores in 2021.
  • The corporation has achieved significant margin growth in recent years. Profit margins increased from Rs 961.4 crores in 2019 to Rs 1,685.2 crores in 2021, according to the corporation.

A Financial Overview

FY ending (Amount in Millions)
Details 2019 2020 2021 August, 2021
Total Assets 10,927.0 13,327.4 16,118.1 15,780.9
Revenues 11,593.2 13,882.9 13,219.2 6,297.2
PAT 961.4 1,347.1 1,685.2 844.7
Profit 8.29% 9.70% 12.75% 13.41%

(Source: SEBI)

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.