Starting today, December 21, 2021, the initial public offering (IPO) of CMS Info Systems opens for the subscription. The Navi Mumbai based cash management company is offering shares worth Rs. 1,100 crore for different participants to invest. CMS Info Systems IPO shall close on Thursday, December 23, 2021.
In the three-day offer, the company is planning to offer the shares held by the promoter, Sion Investment Holdings Private Limited which shall be distributed in lots of 69 shares each with prices ranging between Rs. 205 and Rs. 216. There is only one promoter of CMS Info Systems which holds one hundred percent of the holdings.
In the last financial year, CMS posted a turnover of Rs. 1321.9 crore, and net profits of Rs. 168.5 crore. In the financial year before that, their turnover was Rs. 1388.3 crore and net profits were Rs. 134.7 crores. In the last year, there was an increment in the profit although the turnover was lower. This means that the company has managed its expenses well.
Particulars | Total Turnover | PAT | Net Assets |
31-Mar-19 | Rs. 11,593 million | Rs. 961 million | Rs. 10,927 million |
31-Mar-20 | Rs. 13,883 million | Rs. 1,347 million | Rs. 13,327 million |
31-Mar-21 | Rs. 13,219 million | Rs. 1,685 million | Rs. 16,118 million |
If you are planning to invest in the IPO of CMS Info Systems Ltd., then mark your calendars with the following dates.
Date | Important Events |
21-December-2021 | IPO Opening Date |
23-December-2021 | IPO Closing Date |
28-December-2021 | Date of Allotment |
29-December-2021 | Refund Process Begins |
30-December-2021 | Shares shall be credited to Demat A/c |
31-December-2021 | Shares make a debut on stock exchanges |
On 31st December, the shares of CMS Info Systems will be listed on both, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Important Data Points
FAQs
How many fresh shares are being issued by CMS Info Systems in their IPO?
The IPO of CMS Info Systems Ltd. is a full offer for the sale of the existing shares held by the promoters. There are no fresh issues of shares. The purpose behind this initial public offering is to unlock the benefits of listing.
What is the minimum amount required for subscribing to CMS IPO?
CMS Info Systems Ltd IPO is being offered in the multiple of 69 shares included in one lot. A minimum of one lot has to be subscribed for. The price band set for each share is Rs. 205 to Rs. 216. That being said, a minimum investment of 69 shares is required at the rate of Rs. 216 per share which equals Rs. 14,904.
Why do promoters sell their shares through the initial public offer?
When the promoters believe that the stock price of their company has achieved the fundamental value, they off-load their holdings. However, it is necessary to note that just because the promoters are selling their shares, it does not tantamount to underperformance of the stock in the future. Most companies come up with sale offers of shares to let the promoters liquidate some of their holdings and enjoy the benefits of a listed company like reputation and popularity.
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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