CMS Info Systems shares make flat debut; stock lists at 1.2% premium over IPO price

The Rs 1,100-crore public issue of CMS Info Systems consisted of a pure offer for sale (OFS) by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia.

CMS Info Systems listing
CMS Info Systems witnessed a flat listing on exchanges as shares opened mere 1.16% up from issue price at Rs 218.50.

CMS Info Systems witnessed a flat listing on exchanges as shares opened mere 1.16% up from issue price at Rs 218.50 on Friday. A few mintues after listing, the shares climed 11.85% over issue price to hit fresh high of Rs 243.75. Post listing, the market capitalisation of the company stood at Rs 3,233 crore, according to BSE website data. CMS Info Systems shares got listed at Rs 220 per share on the NSE, nearly 2% premium as compared to its IPO issue price of Rs 216. The IPO of CMS Info Systems was subscribed 1.56 times till the last date of offer on 23 December, receiving a decent response from investors.

CMS Info Systems, one of the largest cash management companies in India, is the last firm to list on the stock exchanges in 2021. The Rs 1,100-crore IPO of CMS Info Systems received bids for about 5.86 crore shares against 3,75,60,975 shares on offer, according to NSE data. The public issue consists of a pure offer for sale (OFS) by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia. The price range of CMS Info Systems IPO was set at Rs 205-216 per share. Axis Capital, DAM Capital Advisors, Jefferies India, and JM Financial were the book running lead managers to the issue. CMS Info Systems garnered Rs 330 crore from anchor investors ahead the IPO.

“With the government’s focus on digital payments, we believe that the availability and use of cash could further decline, which could adversely affect the business activities of the company. The IPO got listed at Rs 220.20 against the issue price of Rs 216 with a premium of 1.94%. The investors who got the allotment can keep a strict Stop Loss of Rs 200 while we recommend investors to invest in the other business with high growth potential,” Santosh Meena, Head of Research, Swastika Investmart Ltd.

CMS Info Systems Ltd provides cash management services, which include ATM services, and cash delivery and pick-up. The company’s integrated business platform is supported by customised technology and process controls, which enables it to offer its customers a wide range of tailored cash management and managed services solutions. It caters to broad set of outsourcing requirements for banks, financial institutions, organized retail and e-commerce companies in India. The company operates business in three segments – cash management services, managed services and others.

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