CMS Info Systems IPO: The shares of CMS Info Systems, which floated its initial public offering earlier this month, saw a tepid listing at the bourses on Friday, December 31. The shares of the cash management major got listed at Rs 218.50 per share on the Bombay Stock Exchnage. This was only 1.16 per cent higher than the price band of Rs 205 to Rs 216, data showed. Post listing at 10:30 am, the shares surged a bit higher to Rs 221 on BSE. On the National Stock Exchange, the CMS Info Systems shares got listed at Rs 220 a piece on Friday. This was about 2 per cent premium on the price band of the CMS Info Systems IPO.
While the CMS Info Systems IPO was a disappointment, it may not have come as a surprise for investors and traders. The weak premium at the grey market ahead of the listing as well as the business nature of the company had somewhat indicated that the listing may not be what investors had hoped for. The CMS Info Systems’ poor share listing comes close in heels with those companies that had floated their IPOs and saw stellar listings at the stock markets.
According to BSE data, the market capitalisation of CMS Info Systems Limited stood at Rs 3,233 crore post listing.
The maiden public issue of CMS Info Systems witnessed a muted demand from investors. While the issue was subscribed only 1.95 times, it saw largely similar demands from all the category. The portion set aside for qualified institutional buyers was booked 1.98 times, while retail investors had put in bids for 2.15 times the shares allotted for them. On the other hand, the part reserved for non-institutional investors was subscribed 1.45 times, as per BSE data.
CMS Info Systems Limited is India’s largest cash management company based on number of ATM points and number of retail pick-up points as of March 31, 2021.
The CMS Info Systems IPO had a price band of Rs 205 to Rs 216 per equity shares, the company has notified. Ahead of its opening of the public issue, the company said it had raised Rs 330 crore through anchor booking by allocation of 1,52,77,777 shares.
Investment Holdings Pte. Ltd, which will receive all the proceeds from the issue. The proceeds from the OFS will be used to carry out an offer for sale of equity shares by promoters aggregating up to Rs 1,100 crore and to achieve the benefits of listing the equity shares on the stock exchanges. The lot size of the offer was 69, which means that a bidder could buy a minimum of 69 shares and in multiples of 69 thereof.
CMS Info Systems is India’s largest cash management company based on number of ATM points and number of retail pick-up points as of March 31, 2021. As on August 31, 2021, the company has pan-India fleet of 3,965 cash vans and the network of 238 branches and offices. It operates mainly in three business segments — Cash management service that includes end-to-end ATM replenishment services, Managed services that includes banking automation product sales, deployment and associated annual maintenance; and Other services that includes end-to-end financial cards issuance and management for banks and card personalisation service.