CMS Info Systems, the largest cash management company in India, is all set to launch its IPO (Initial Public Offering) on 21 December 2021. The public subscription will be a pure OFS (Offer for Sale) by Sion Investment Holdings Pte Ltd.
The company has recently cut its IPO size from a proposed Rs. 2,000 crores to Rs. 1,100 crores. It will not receive any net proceeds from this public offering, and all funds will go to the shareholder.
Check out the details of the company and its upcoming IPO.
CMS Info Systems Ltd. is India’s largest and world’s fifth-largest Cash Management Company in terms of ATMs and retail pick-up points. Formed in 2009 by Blackstone Group in partnership with Mr. Rajiv Kaul, the company has grown large enough to become the ‘circulation system’ of the country’s economy.
CMS provides a range of managed services and tailored cash management solutions, including ATM services, cash delivery and pick-up. It manages the entire flow of cash cycle from RBI’s deposits to bank’s currency chests to when the cash gets deposited back in banks.
The company’s services include:
CMS Info Systems’ integrated business platform serves a broad set of outsourcing requirements for banks, financial institutions, e-commerce, and organized retail companies. It has a vast network of 90,000 ATMs, 3965 cash vans, and 238 branches/offices serving more than 1,33,000 business points every day.
CMS Info Systems had filed DRHP (draft red herring prospectus) for a Rs. 2,000 crores IPO on 14 August, which received SEBI’s nod on 29 October. Since then, it has decided to reduce its IPO size to Rs. 1,100 crores. The public offering is entirely an OFS by its sole promoter Sion Investment Holdings.
The following are the objectives of CMS Info Systems IPO:
The price band of CMS Info Systems IPO will be between Rs. 205 to 216. Investors can make a minimum bid of 69 equity shares and in multiples of 69 thereafter. They can make a maximum bid for 897 shares amounting to Rs. 1,93,752 at the upper price band.
50% of the IPO is reserved for QIB (Qualified Institutional Investors), whereas NIIs (Non-Institutional Investors) have 15% allocation and RII (Retail Individual Investors) have 35% allocation.
This IPO will open for subscription on Tuesday, 21 December 2021, and close on Thursday, 23 December 2021. The equity shares of CMS will be listed on both NSE and BSE on 31 December 2021.
The book running lead managers to this issue are JM Financial, Axis Capital, DAM Capital Advisors, and Jefferies India. Link Intime India Private Ltd. will be the registrar to this IPO. Sion Investment Holdings Pte Ltd., an affiliate of Asia’s largest PE firm, Baring PE Asia, holds a 100% stake in CMS.
CMS Info Systems is India’s largest cash management company managing around Rs. 5,000 crores of cash every day. For FY21, it reported a net profit of around Rs. 168.52 crores compared to Rs. 134.71 crores in the previous fiscal. Its total income for FY21 was at Rs. 1,321.92 crores against Rs. 1,388.29 crores from the previous year.
The following table details CMS’s financial performance in the last three years.
| For the financial year that ended on | Total Revenue | Profit After Tax | Total Assets |
| 31 March 2021 | 13,219.21 | 1685.23 | 16,118.10 |
| 31 March 2020 | 13,882.94 | 1347.09 | 13,327.38 |
| 31 March 2019 | 11,593.19 | 961.41 | 10,927.04 |
Note: Values are in Rs. millions
As the leading market player in cash management services in India, CMS Info Systems is in a uniquely strong position. It has a deeply entrenched network with a nationwide presence, and a client roster made up of all leading banks, financial institutions, retail chains, insurance companies.
Long-standing customer relationships, increased business opportunities and a highly experienced management team make this company an attractive proposition to investors. However, people should remember that equity investments carry inherent risks and, therefore, always do their due research before investing.
Baring Private Equity Asia, a private equity firm with over US$9 billion in assets under management, currently holds a 100% stake in the company.
No, while Baring Pvt Equity Asia did file draft papers with SEBI in 2017, it did not go ahead with its IPO. As such, its 12-month approval period lapsed with no IPO launched.
The company’s managed services include the following:
You can purchase a minimum of 1 lot, consisting of 69 equity shares priced at Rs. 14,904.
If this IPO has an anchor investment, it will open for bidding on 20 December 2021.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.
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