Rs. 1,100 Cr IPO of CMS Info Systems is LIVE now! Should you invest?

22 December 2021
4 mins read
Rs. 1,100 Cr IPO of CMS Info Systems is LIVE now! Should you invest?

Starting today, December 21, 2021, the initial public offering (IPO) of CMS Info Systems opens for the subscription. The Navi Mumbai based cash management company is offering shares worth Rs. 1,100 crore for different participants to invest. CMS Info Systems IPO shall close on Thursday, December 23, 2021.

In the three-day offer, the company is planning to offer the shares held by the promoter, Sion Investment Holdings Private Limited which shall be distributed in lots of 69 shares each with prices ranging between Rs. 205 and Rs. 216. There is only one promoter of CMS Info Systems which holds one hundred percent of the holdings.

About CMS Info Systems Limited

 

  • CMS Info Systemsis India’s biggest cash management company that provides various solutions such as ATM points, retail pick-up points, and payment processing.
  • They provide end-to-end technology solutions to financial institutions and e-commerce companies in India. Their solutions are designed to meet the requirements of the banking and finance industry.
  • CMShas three majorly active segments: (i) Cash Management, (ii) Process Automation and Business Solutions, and (iii) Card Issuance and other personalized services related to card issuance.

Financial Synopsis

In the last financial year, CMS posted a turnover of Rs. 1321.9 crore, and net profits of Rs. 168.5 crore. In the financial year before that, their turnover was Rs. 1388.3 crore and net profits were Rs. 134.7 crores. In the last year, there was an increment in the profit although the turnover was lower. This means that the company has managed its expenses well.

Particulars Total Turnover PAT Net Assets
31-Mar-19 Rs. 11,593 million Rs. 961 million Rs. 10,927 million
31-Mar-20 Rs. 13,883 million Rs. 1,347 million Rs. 13,327 million
31-Mar-21 Rs. 13,219 million Rs. 1,685 million Rs. 16,118 million

 

Important Dates – CMS IPO

If you are planning to invest in the IPO of CMS Info Systems Ltd., then mark your calendars with the following dates.

Date Important Events
21-December-2021 IPO Opening Date
23-December-2021 IPO Closing Date
28-December-2021 Date of Allotment
29-December-2021 Refund Process Begins
30-December-2021 Shares shall be credited to Demat A/c
31-December-2021 Shares make a debut on stock exchanges

On 31st December, the shares of CMS Info Systems will be listed on both, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Important Data Points

  • On December 20, the company raised over Rs 330 crore through an offer for the sale of shares to anchor investors. The anchor book included various financial institutions such as HSBC, Goldman Sachs, State Bank of India, and Morgan Stanley.
  • Most of the brokerages have a positive view of the company and its IPO. They assign a “subscribe” rating to the stock based on its expected returns and strong management team. Whereas, others take a neutral stance.
  • The decline in the profitability of banks and unfavorable government policies can raise concerns about the company’s operations as the business of CMSis directly linked to these institutions.

FAQs

How many fresh shares are being issued by CMS Info Systems in their IPO?

The IPO of CMS Info Systems Ltd. is a full offer for the sale of the existing shares held by the promoters. There are no fresh issues of shares. The purpose behind this initial public offering is to unlock the benefits of listing.

What is the minimum amount required for subscribing to CMS IPO?

CMS Info Systems Ltd IPO is being offered in the multiple of 69 shares included in one lot. A minimum of one lot has to be subscribed for. The price band set for each share is Rs. 205 to Rs. 216. That being said, a minimum investment of 69 shares is required at the rate of Rs. 216 per share which equals Rs. 14,904.

Why do promoters sell their shares through the initial public offer?

When the promoters believe that the stock price of their company has achieved the fundamental value, they off-load their holdings. However, it is necessary to note that just because the promoters are selling their shares, it does not tantamount to underperformance of the stock in the future. Most companies come up with sale offers of shares to let the promoters liquidate some of their holdings and enjoy the benefits of a listed company like reputation and popularity.

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