New Delhi: The IPO of CMS Info Systems, the company that handles cash management for banks, is set to open on December 21. CMS Info Systems is going to raise Rs 1,100 crore through IPOs from the market. The company is one of the largest in the country in its segment. The company is giving profits and the good thing for investors is that there is no debt on the company. The firm has reserved 35 per cent of its issue for retail investors and 50 per cent for qualified institutional buyers (QIBs). The remaining 15 per cent is reserved for non-institutional investors (NIIs).
Price Band of the company
CMS Info Systems's IPO will open on December 21 (Tuesday) and the issue can be subscribed till Thursday (23 December). The company has fixed a price band of Rs 205 to 216 per share. Any investor must apply for a lot size of 69 shares amounting to Rs 14,904, or any investor can apply for a maximum of 13 lots for which Rs 1,93,752 will have to be paid. The company's shares will be listed on BSE and NSE.
CMS Info Systems does cash management at the ATMs
CMS Info Systems does cash management as well as ATM installation and maintenance for banks across the country. CMS Info Systems is the country's largest cash management company, based on ATM points and retail pick-up points. The company has 3,911 cash vans and 224 branches across the country as of March 2021.
Company profile
Founded in 2008, the Mumbai-based company is regarded one of world's leading ATM cash management companies. CMS Info Systems focuses on installing, managing assents, and technology solutions for financial institutions, banks, organised retail and e-commerce companies in the country. Shyamala Gopinath is chairperson and independent director of CMS Info-Systems while Rajiv Kaul is executive vice-chairman, CEO and whole-time director of the company.
According to a report by Economic Times, the public issue is complete an offer for sale exercised by Sion Investment Holdings Pte that holds 100 per cent of the company. The company will not receive any net proceeds from the IPO. The objective of the public issue is to carry out an offer for sale, following which, the promoter shareholding will decrease to 65.59 per cent. The company aims to gain benefits from listing its shares on the stock exchanges.
Impact of promoting digital transactions
Talking about the company's financial performance, CMS Info Systems' revenue from the operations has increased from 6.7 per cent annually to 1,306 crores and the company's profit has been Rs 168.5 crores. The biggest risk for the company is the government and the RBI's focus on cashless transactions in the long run, which may impact the company's trade.