CMS Info Systems IPO: The IPO of CMS Info Systems Limited, a cash management company, opened a day ago. CMS Info Systems’ IPO was 40 percent subscribed on the first day of bidding, attracting a decent response from investors, especially the retail category. CMS Info Systems’ IPO has now reached its second bidding day and it remains to be seen how it performs on Wednesday, December 22. The offer will close on Thursday after a three-day bidding process. CMS Info Systems Limited is India’s largest cash management company by number of ATMs and number of retail pick-up points as of March 31, 2021.
The company aims to raise Rs 1,100 crore through its initial public offering, with 5,093 – 5,366 crore shares for sale. The issue, which opened on Tuesday, December 21, is an entire copy for sale. This means that CMS Info Systems will not receive any proceeds from the IPO. On Tuesday, 40 percent of the issue was booked, with support from the private investor category, who invested 79 percent of the shares reserved for them. The non-institutional buyers category was booked just 1 percent, according to data from the Bombay Stock Exchange or BSE. The Qualified Institutional Buyers have not yet made an offer for the issue.
CMS Info Systems’ IPO has a price range of Rs 205 to Rs 216 per share, the company has reported.
The issue of Rs 1,100 crore is completely a put up for sale by promoter Sion
Investment Holdings Pte. Ltd, which will receive the entire proceeds of the issue. The proceeds from the OFS will be used to carry out an offer for sale of shares by promoters totaling Rs 1,100 crore and to realize the benefits of listing the shares on the exchanges. The lot size of the bid is 69, which means that a bidder can buy a minimum of 69 shares and multiples of 69 of them.
The promoter currently owns 100 percent of the company. After the public offer, it drops to 65.59 percent.
CMS Info Systems Limited is expected to make its IPO on December 31. On Wednesday, which is the second day of bidding, the privately held shares of the CMS Info Systems IPO traded at Rs 35, which is just 16 percent of the top price bracket of Rs 216. The low gray market premium of CMS Info Systems IPO indicated a lukewarm quote for the issuance later this month.
Analysts at Anand Rathi were positive about the IPO of CMS Info Systems for investors looking to invest for the long term. “We see limited upside potential for growth in
the future. While evaluating on the financial front at the top of
the IPO price range the valuation seems reasonable, all things considered
the above scenarios, we assign a “Subscribe – Long Term” rating to them
IPO,” the brokerage said in a note.
Meanwhile, researchers at HEM Securities gave a subscription rating to the public offering. “The company is launching the issuance at a price range of Rs 205-216 per share at a p/e multiple of 19x based on FY21 eps. The company is a leading player in consolidating the market with strong foundations and an integrated business platform with a wide range of services and products. The company also has track
record of strong productivity and operational excellence with experienced and highly qualified management. That’s why we recommend that you subscribe to the issue,” it read.
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