The last initial public offering of 2021, CMS Info Systems, listed at a 2 per cent premium at Rs 220 over its issue price of Rs 216 on the Bombay Stock Exchange on Friday while it started off at Rs 220.20 on the National Stock Exchange.
However, at 11:10 AM, the stock was up by about 18 per cent, trading at Rs 258.50 at the BSE and at Rs 257.19 at the NSE.
“CMS Info Systems has been able to post good results in the past and the fundamentals look good but because of the current market scenario, we saw a tepid response. However, gains in the long term are expected as the company is still fundamentally strong” says Likhita Chepa, Senior Research Analyst, CapitalVia Global Research Ltd.
The offer was subscribed 1.95 times when it was open for bidding between December 21-23. Qualified institutional investors (QIB) subscribed 1.98 times while retail investors booked 2.15 times. And the non-institutional investors bid for 1.45 times their allotted quota. According to NSE data, the Rs 1,100 crore public offer received bids for 5.86 crore shares as against a total offer of 3.75 crore shares.
The IPO was entirely an offer for sale by its promoter Sion Investment Holdings, an affiliate of Baring Private Equity Asia. Therefore, CMS Info System did not receive any proceeds and the money went to the selling shareholder i.e., Sion Investment Holdings.
Axis Capital, Jefferies India, JM Financial and DAM Capital Advisors are managing the public issue.
According to CMS Info Systems, outsourced ATMs (Automated Teller Machine) are expected to grow at a Compounded Annual Growth Rate (CAGR) of 10 per cent and outsourced organised retail points will grow at a CAGR of 13 per cent between FY21-27.
As of March 31, 2021, CMS Info Systems Limited was India's largest cash management firm in terms of ATM and retail pick-up points. The company installs, maintains and manages assets and technological solutions for banks, financial institutions, organised retail and e-commerce companies in India on an end-to-end outsourced basis.
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