CMS Info Systems Limited enters the primary market with its initial public offering on December 21, 2021. The issue will close on December 23, 2021. The Price Band of the offer has been fixed at Rs. 205 to Rs. 216 per equity share. Bids can be made for a minimum of 69 equity shares and in multiples of 69 equity shares thereafter. The company plans to raise funds via an initial public offer through an offer for the sale of equity shares aggregating up to Rs. 1,100 crore by Sion Investment Holdings PTE. Sion Investment Holdings Pte. Limited is the promoter of the company. The Offer is being made through the Book Building Process. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders. The Equity Shares offered are proposed to be listed on BSE and NSE.
- Offer Opens: December 21, 2021
- Offer Closes: December 23, 2021
- Issue Type: Book Built Issue
- Face value: Rs 10 each
- Price Band: Rs 205–216 per equity share
- Bid: Minimum of 69 equity shares and in multiples
Verdict: Subscribe
The Company
CMS Info Systems Limited is the largest cash Management Company in terms of the number of ATM points and retail pick-up points as of March 31, 2021. The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, organized retail and e-commerce companies in India. The business operates in 3 segments – cash management services, managed services i.e. banking automation product sales, common control systems, and software solutions, etc., and others i.e. financial cards issuance for banks and card personalization services. As of August 31, 2021, it has a network of 3,965 cash vans and 238 branches and offices to cover all states and union territories. It is a leading market player with strong fundamentals. The experienced and highly qualified management team provides an integrated business platform offering a range of products and services.
Financials
It recorded revenue of Rs 1,306.09 crore in FY21, down from Rs 1,383.24 crore a year ago, but profit increased to Rs 168.52 crore from Rs 134.7 crore the same period. The company clocked a profit of Rs 84.47 crore on revenue of Rs 626.29 crore in five months to August 2021.
Our Verdict
We feel the company has fixed a good offer price leaving on the table enough for the subscribers. It’s long-standing in the market, historical numbers, clients, unique space it is working – all these make it worthwhile, better than those companies that keep coming out without any asset.
