- Cash management company
CMS Info Systems is likely to announce its listing on exchanges on December 31. - The IPO received tepid response from investors as it was subscribed just 1.95 times.
- Following this, shares of the company may not open with huge listing gains as the grey market premium is at ₹5 per share.
CMS Info Systems’ business includes installing, maintaining and managing assets and technology solutions on an end-to-end outsourced basis for banks under long term contracts.
The initial public offering (IPO) was open for subscription from December 21 to December 23. CMS Info Systems IPO received a tepid demand from investors as its IPO was subscribed just 1.95 times the number of shares offered in the three days of IPO bidding process. The grey market premium of the company’s shares show a little premium of ₹5 from the higher end of the price band.
Moreover, the cash management company is coming up with an IPO when the government is pushing digitisation. Also, the company’s finances dipped slightly during lockdown as customers shifted some part of their transactions to digital payments.
So, the company may face a hurdle in its finances once again if another wave of COVID-19 comes through.
The company raised ₹1,100 crore via public issue of shares, which is a complete offer for sale by promoter Sion Investment Holdings PTE, an affiliate of Baring Private Equity Asia.
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