CMS Info Systems IPO

 

CMS Info Systems Limited is India’s biggest cash management business in terms of ATMs and retail pick-up points, as well as one of the globe ‘s biggest ATM cash management firms in terms of ATMs. CMS Info Systems IPO will hit the market in 21 December 2021.

About CMS Info System

According to the number of ATMs operated, India is the globe ‘s third biggest ATM region. Installing, operating, and monitoring assets and technological solutions for banks on an end-to-end contracted platform under long-term contracts is part of CMS Info Systems Limited business.

Their integrated business system is endorsed by specialised technology and procedure controls. It is allowing them to provide a wide range of personalised cash management and managed services solutions to their clients.

While also generating cross-selling possibilities and driving synergies and efficiencies throughout their organisation.

In India, they provide a diverse range of outsourcing needs for banks, financial institutions, organised retail, and e-commerce businesses.

Business Segments

Their company is divided into three sections:

• Cash management services

It include end-to-end ATM replenishment services, cash pick-up and delivery, network cash management and verification services (collectively referred to as “retail cash management services”), and cash-in-transit services for banks.

It accounted for 68.61 percent of their revenue from operations in Fiscal 2021 and grew at a CAGR of 0.31 percent from Fiscal Year 2019 to Fiscal 2021.

• Managed services

Sales, installation, and yearly maintenance of financial services automation products; end-to-end Brown Label deployment and systems integration for banks.

It also Includes common control systems and software solutions, such as multi-vendor software solutions and other security and automation software technologies; and remote monitoring for ATMs.

It accounts for 27.88 percent of their earnings from activities.

• Others

It accounted for 3.51 percent of their income from activities in Fiscal 2021, including end-to-end financial card issuance and administration for banks and card customization services.

Cash is the most popular mode of payment in India, regardless of age, gender, location, or economic level. The CMS Cash Index, above all, represents the ebb and flow of commerce in India, as well as the peaks of festival and wedding seasons, pay days, downturns, and emergency occurrences.

Aim

New opportunities arise on a daily basis, breaking new ground and forming new relationships. And it has to be fueled by money that gets to where it needs to go, flows easily, and understands and energises the economy’s heart.

They believe that by offering a wide variety of facilities throughout each phase of the cash cycle in India.

They can help boost the speed of cash in the economy: from when the RBI first deposits cash in branches of identified banks, known as currency chests (that are permitted by the RBI to preserve and allocate rupee notes and coins for liquidity to banks), to when cash is deposited back in banks after it has been spent.

Journey

It was established as a private limited company in 2008, under the name ‘Subhiksha Realty Private Limited.’

In 2009, CMS Computers Limited’s IT infrastructure management division was demerged and handed to the Company, prompted by a Blackstone Group investment to acquire a controlling share in several important CMS Computers companies.

In 2011, they acquired Securitrans India Private Limited, solidifying its position as India’s top cash management services provider.

Sion Investment Holdings Pte. Limited, a Baring Private Equity Asia affiliate, purchased a 100% ownership in CMS Info Systems.

CMS Info Systems IPO

CMS Info Systems Limited, headquartered in Navi Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 2000 crores on 14 August 2021.

The Offer includes no fresh equity shares and There is an offer for sell(OFS) of 2000 Crores value equity shares by the promoters mentioned in the DRHP.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		1,611.81	1,332.74	1,092.70
Total Revenue		1,321.92	1,388.29	1,159.32
Profit After Tax		168.52	134.71	96.14

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	11.39	11.39	3
Financial Year 2020	9.10	8.77	2
Financial Year 2019	6.50	6.33	1
Weighted Average	9.81	9.56

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the basic criteria and key strengths that contribute into determining the Offer Price:

1. Market leader with stable fundamentals in a competitive market.
2. A pan-India presence with a strong presence in emerging areas.
3. A comprehensive business platform with a wide range of services and products.
4. Systems and methods for managing and scaling a firm that is operationally complicated.
5. Proven track record of high productivity and efficiency.
6. A highly trained and skilled executive team that has effectively expanded their company.

CMS Info Systems IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	5	SIS Limited	19.10

CMS Info Systems IPO Details

IPO Opening Date	21 December 2021
IPO Closing Date	23 December 2021
Issue Type	Book Building
Face Value	10 per  share
IPO Price	205 to 216 per equity share
Market Lot	69
Min Amount	14,904
Listing At	BSE, NSE
Issue Size	2000 Crores
Fresh Issue	0 Crores
Offer for Sale	2000 Crores

CMS Info Systems IPO Date

CMS Info Systems IPO opening date is 21 December 2021, and the closing date is 23 December 2021. The issue may list in 31 December 2021.

IPO Opening Date	21 December 2021
IPO Closing Date	23 December 2021
Basis of Allotment Date	28 December 2021
Initiation of Refunds	29 December 2021
Credit of Shares to Demat Account	30 December 2021
IPO Listing Date	31 December 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

CMS Info Systems IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of CMS Info Systems IPO.

CMS Info Systems IPO GMP

CMS Info Systems IPO Grey Market Premium is 5.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
30 December 2021	2	1300	150
29 December 2021	5	1500	150
28 December 2021	5	1900	250
27 December 2021	15	1500	200
26 December 2021	4	1100	100
25 December 2021	No Trade	No Trade	No Trade
24 December 2021	5	1000	100
23 December 2021	31	3500	400
22 December 2021	33	4100	500
21 December 2021	19	2300	250
20 December 2021	11	1200	100
19 December 2021	55	3400	400
18 December 2021	No Trade	No Trade	No Trade

CMS Info Systems IPO Review

You can apply for short view CMS Info Systems IPO.

CMS Info Systems IPO Risk

• In India, a reduction in the availability or usage of cash as the primary form of payment might have a negative impact on their business.
• The COVID-19 epidemic has had and will continue to have a substantial and negative impact on their company and operations.
• A small number of clients account for a significant part of their revenue.
• If banks stop working with their MSP customer, their company, results of operations, cash flows, and financial position may suffer.
• As part of their company development, They’ve signed contracts for Brown Label ATMs and remote monitoring.
• Failures of their information security systems may have a significant negative impact on their business.

Other Threats

• Their company is vulnerable to a variety of criminal acts from other parties, such as armed robbery, theft, and fraud.
• They work in highly competitive environment and may be unable to properly adapt to market changes.
• Any negative change in laws, rules, or regulations might have a negative impact on their company.
• Their Company, their Directors, their Subsidiaries, and their Promoter are the subject of ongoing legal actions.
• Any negative outcome in such processes has a negative impact on their company.
• They provide guarantees to certain of their clients, which puts them at risk of liability.
• They may not be able to implement their business plans in a way that allows them to develop their company naturally.

Business Model

The CMS technology is a vast, dependable, and adaptable platform.  CMS can deliver the right physical payments flow for client entity.

They operate from ATM network management to retail cash management, optimising currency chests for banks to setting up multi vendor ATM software applications for a network, automating enterprise cash collections to home delivery of money for senior citizens.

Furthermore, they have a significant competitive advantage due to our in-depth understanding of the markets they work in and local requirements.

Other Services

They’ve also had success incubating and growing numerous new service lines in areas outside of their core business, allowing them to provide a larger range of services and products to their clients while also realising synergies inside their managed services company.

Their integrated facility and product providing has allowed them to shift their business mix toward delivering more integrated end-to-end services for their clients.

It allowing them to offer lower pricing, more dependable facility via a single point of responsibility, better route planning in advance, faster reconciliation, and fewer days sales outstanding to their customers.

CMS Info Systems IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

CMS Info Systems IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
21 December 2021	1	0.00	0.01	0.83	N/A	0.42
22 December 2021	2	0.00	0.05	1.37	N/A	0.69
23 December 2021	3	1.98	1.45	2.15	N/A	1.95

Promoters

• Sion Investment Holdings Pte. Limited

Promoters’ Holding

Pre Issue Share Holding	100%
Post Issue Share Holding