Mumbai-based cash management company CMS Info Systems is all set to open its initial public offering (IPO) on December 21 and close on December 23.
CMS Info Systems Limited is India’s largest cash management company in terms of the number of ATM points and retail pick-up points as of March 31, 2021. The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, organized retail and e-commerce companies in India.
Three main operating segments of the company are: 1. cash management services, 2. managed services and 3. others.
The services offered by the company to banks under cash management services:
- Cash pickup and delivery
- Cash in transit services
- End-to-end ATM replenishment services
- Retail cash management services
The services offered by the company to banks under Managed services:
- Remote monitoring of ATMs
- Common control systems and software solutions
- Brown label deployment and managed services
- Annual maintenance of banking automation products
Managed services are mostly recurring in nature.
The services offered by the company to banks under Other services:
- End-to-end financial card issuance and management
- card personalization
As of August 31, 2021, it has a network of 3,965 cash vans and 238 branches and offices to cover all of India’s states and union territories.
Promoters of the company:
Sion Investment Holdings Pte. Limited is the promoter of the company, which acquired the company in 2015
CMS Info System IPO GMP is ₹30. According to the Market observers, Grey Market is expecting that the share would be listed at ₹246 i.e. ₹ 216+ ₹ 30, as the price band of the public issue is ₹205 to ₹216 per equity share.
Objects of the Issue:
The IPO aims to raise funds for the following objectives;
- The sole objective of the company is to achieve the benefits of listing the equity shares on the stock exchanges.
Pros of Investing in the company:
- The company is the market leader in the cash management and brown label ATM management segment. As the competition in the banking sector will increase, banks will prefer to outsource the basic focus areas for banks like cash management, ATM management, so that they would be able to focus on their core business segments which will benefit the companies like CMS.
Cons of Investing in the company:
- Although cash is the dominant form of transaction in India but Online payment mechanism like UPIs can reduce the prevalence of cash, which can affect the business of the company. As the government is also supporting the cashless payment modes which may affect the company in a negative way.
CMS Info System Limited IPO Details:
| Price Band | ₹205 to ₹216 |
| IPO Opening Date | 21 December, 2021 |
| IPO closing Date | 23 December, 2021 |
| Allotment Date | 28 December, 2021 |
| Initiation of Refund | 29 December, 2021 |
| Credit of shares to Demat Account | 30 December, 2021 |
| IPO Listing Date | 31 December, 2021 |
| Market Lot | 69 shares |
| Face Value | ₹10 per equity share |
Financial Information(₹ in million):
| 31-Aug-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 15,780.86 | 16,118.10 | 13,327.38 | 10,927.04 |
| Total Revenue | 6,297.23 | 13,219.21 | 13,882.94 | 11,593.19 |
| Profit after Tax | 844.70 | 1,685.23 | 1,347.09 | 961.41 |
CMS Info Systems Limited IPO Details
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