CMS Info Systems’ IPO reached an 80 percent subscription mark so far on the final day. What does this mean?

CMS Info Systems Subscription

The CMS Info Systems IPO has received a lukewarm reaction from investors, with just 80 percent of the shares subscribed on the last day of bidding. In comparison to the IPO size of 3.75 crore equity shares, the offer has received bids for 2.99 crore equity shares.

Non-institutional investors have bid 7% of their allocated allocation, while retail investors have bid 1.48 times the permitted quota. Bids are yet to be submitted for the section allocated for eligible institutional purchasers.

About the Company

CMS Info Systems was founded in 2008 and claims to be India’s biggest cash management firm based on the number of ATMs and pick-up stations. It intends to fund Rs 1,100 crore via a public offering, which would be solely an offer for sale by promoter.

Installing, maintaining, and managing assets and technological solutions for banks on an end-to-end outsourced basis under long-term contracts is the company’s business. CMS, according to the company’s management, will gain from the changing outsourcing trend. Outsourced ATMs are predicted to increase at a CAGR of 10%, while outsourced organized retail points are expected to grow at a CAGR of 13% between FY21 and FY27, according to the business.

India is the world’s third-largest ATM market, yet it is severely underserved. “There are also government incentives that favour this industry. CMS will be able to expand their company significantly as a result of this. They are backed up by a senior management team made up of highly skilled and experienced individuals,” according to experts. “On post issuance equity, the stock is valued at 16.4x (based on FY22 annualised profits) at the top price range of Rs 216 per share,” experts added.

Further Key Takeaways

• In terms of ATMs and retail pick-up sites, the company is India’s largest cash management supplier as of March 2021.
• Customers have been loyal to the firm for a long time, and future business opportunities exist.
• The organisation has had sustained revenue growth over the last three years. The company’s profits increased from Rs 1,159.3 crores in 2019 to Rs 1,321.9 crores in 2021.
• The corporation has achieved significant margin growth in recent years. Profit margins increased from Rs 961.4 crores in 2019 to Rs 1,685.2 crores in 2021, according to the corporation.

Frequently Asked Questions (FAQs)

Q1. How much of the CMS Info Systems IPO is allocated to each investing group?

A minimum of 50% of the outstanding shares is required for QIB. Retail – At least 35% of the total number of shares offered. NII / HNI – A minimum of 15% of the available shares.

Q2. What is the CMS Info Systems IPO‘s minimum subscription amount?

69 shares at the lowest price band of Rs 205 per share, or Rs 14,145, must be applied for. Similarly, the minimum amount to apply for the highest pricing band of Rs 216 is Rs 14,904.

Q3. When will the CMS Info Systems IPO begin?

The initial public offering (IPO) of CMS Info Systems will commence on December 21, 2021, and close on December 23, 2021.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.