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.
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:
“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.
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