CMS Info Systems IPO opens today with Omicron scare looming large

• CMS Info Systems’ IPO opens today, December 21 and closes on December 23.
• The company plans to raise ₹1,100 crore via public issue of shares, which is a complete offer for sale by promoter Sion Investment Holdings PTE.
• Shares of the company were demanding a premium of ₹30 per share in the grey market over a price band of ₹205 to ₹216 per share.

Mumbai-based cash management company CMS Info Systems has opened its initial public offering (IPO) today and will close on December 23.

CMS Info Systems claims to be India's largest cash management company based on number of installed ATM points and number of retail pick-up points as of March 2021.

Its business includes installing, maintaining and managing assets and technology solutions on an end-to-end outsourced basis for banks under long term contracts.

The company is looking to raise [same as prev story] ₹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. The promoter acquired the company in 2015 and holds a 100% stake in the company at present. As a result the company will not receive any money from the IPO.

Here are important details related to the IPO:
Today (December 20), shares of the company were demanding a premium of ₹30 per share in the grey market over a price band of ₹205 to ₹216 per share.

“The company is well placed with a market share of 24.7% based on the total number of ATMs serviced and a market share of 41.1% based on the total number of outsourced ATMs. They have a strong network across pan-India and have long-standing relationships with leading banks. Besides, the company’s financials have been healthy and it has posted revenue/PAT CAGR of 7%/32% over FY19-21. From a long term perspective, we have a positive view on the company,” said analysts at Religare Broking.

However, analysts at Angel One have recommended a ‘Neutral’ rating on the stock as it feels its business would be impacted if the third wave of COVID-19 comes true in India.

SEE ALSO: From ICICI Bank to INOX, these 9 stocks are down as much as 15% since being the top Diwali picks 6 weeks ago

Used car marketplace Cars24 has raised as much as Dream11 this year to set up operation overseas