CMS Info Systems IPO Details – IPO Date, Price, GMP, Analysis & Review

CMS Info Systems IPO - Details, Dates, Review and AnalysisCMS Info Systems IPO (CMS Info Systems Limited IPO) Details

Mumbai based CMS Info Systems is coming up with an IPO that would open for subscription on 21st December 2021. CMS Info Systems is largest cash management company in terms of the number of ATM points and retail pick-up points in India. Company has stable revenue growth in the last 3.5 years. Its margins improved in the last few years. Should you invest in CMS Info Systems IPO? This article would provide IPO details, Dates, GMP, Listing Date and conclusion on whether this is good or bad for investment.

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About CMS Info Systems Limited

CMS Info Systems Limited is the largest cash management company in terms of the number of ATM points and retail pick-up points in India.

Company is engaged in installing, maintaining and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, organized retail and e-commerce companies in India.

Its business operates in three segments

1) Cash management services

2) Managed services i.e. automated product sales, common control systems, and software solutions, etc.,

3) Others i.e. financial cards issuance for banks and card personalization services.

By end of Aug-21, they had network of 3,965 cash vans and 238 branches and offices to cover all of India’s states and union territories.

CMS Info Systems Limited IPO Dates, Price and Size

IPO Opening Date 21-Dec-21
IPO Closing Date 23-Dec-21
Issue Type Book Built Issue IPO
Face Value Rs 10 per equity share
IPO Price band Rs 205 to Rs 216 per equity share
Lot Size 69 Shares
Min Order Quantity 69 Shares
Listing at BSE and NSE
Total Issue Size Rs.1100 Crores
    Fresh issue     Rs.0 Crores
    OFS     Rs.1100 Crores

CMS Info Systems IPO RHP

What are the strengths of CMS Info Systems Limited?

1) Company is a leading player in a consolidating market with strong fundamentals

2) It has Pan-India footprint with deep penetration in growing markets

3) Company has longstanding customer relationships leading to increased business opportunities

4) It is integrated business platform offering a broad range of services and products

5) Systems and processes to manage and scale an operationally complex business

6) Company has track record of strong productivity and operational excellence

7) It has experienced and highly qualified management team that have successfully grown its business

What are the Objects of the IPO Offer?

CMS Info Systems IPO Size is Rs 1,100 Crores and entire proceeds is OFS.

Under OFS, selling shareholders would sell their shares and company would not get any money from this IPO proceeds.

Beyond this, company would get listing benefits.

Who are the promoters of CMS Info Systems Limited?

Sion Investment Holdings Pte. Limited is the promoter of the company.

How is the company financial track record?

Here are the total assets, revenues and profits of the company in the last 3 years and 6 months.

Financial Year ending / Period ending (Amt in Mns)
Particulars FY19 FY20 FY21 Aug-21
Total Assets 10,927.0 13,327.4 16,118.1 15,780.9
Revenues 11,593.2 13,882.9 13,219.2 6,297.2
Profit After Tax 961.4 1,347.1 1,685.2 844.7
Profit % 8.29% 9.70% 12.75% 13.41%

Why to invest in CMS Info Systems IPO?

Here are the positive factors in this company.

1) Company is India’s largest cash management company, both in terms of ATM  points and retail pick-up points as of Mar-2021.

2) Company has long standing customer relationships and potential business opportunities.

3) Company has generated stable revenue growth in the last 3 years. Its revenues increased from Rs 1,159.3 Crores in FY19 to Rs 1,3219 Crores in FY21.

4) Company has generated strong margin growth in the last few years. Its margins increased from Rs 96.1 Crores in FY19 to Rs 168.5 Crores in FY21.

Risk Factors of investing in CMS Info Systems IPO

1) Company entire IPO proceeds (Rs 1,100 Crores) is Offer for Sale where the company would not get any money as these would go to selling shareholders.

2) India has moved to digitization post demonetization. In future, if there is further decrease in the availability or use of cash, it can impact company business

3) Company business is highly dependent on the banking sector in India. Any adverse development in Indian banks can affect company business

4) Company business have affected by covid-19 pandemic and it can affect in future too.

5) Company derives a substantial portion of its revenue from limited number of customers. If any loss of such customers can affect business

6) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.

Frequently Asked Questions (FAQs)

What is CMS Info Systems IPO Rating?

Company do not require to get IPO rating as this issue is for equity shares. Currently, CMS Info Systems short term rating is A1+ and long term rating as AA-Stable by ICRA Ratings.

What is CMS Info Systems IPO GMP today?

GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about the IPO price as it is unorganized market. CMS Info Systems IPO GMP as per Chanayka is Rs 1,010

How much portion allocated to each group of investors in this IPO?

1) QIB - Not less than 50% of the offered shares 2) Retail - Not less than 35% of the offered shares 3) NII / HNI - Not less than 15% of the offered shares

What is the minimum amount to subscribe to this IPO?

Investors need to apply for 69 shares at minimum lower price band of Rs 205 per share = Rs 14,145. Similarly, the minimum amount to be applied on upper price band of Rs 216 is Rs 14,904.

Is it good or bad for investment?

Invest should always invest in a company that has strong financial track record. This company has generated stable revenue growth in the last 3.5 years. Company has significant growth in profits of the company in the last few years.

CMS Info Systems Limited IPO Valuation

1) CMS Info IPO price band is Rs 205 to 216 per share.

2) If we consider last 3 years weighted average EPS of Rs 11.09 and the upper price band of Rs 216, P/E works out to be 19.5x.

3) Similarly, if we consider FY2021 EPS of Rs 9.56 and the upper price band of Rs 216, P/E works out to be 22.5x.

4) If we consider 5 months ended Aug-21 EPS and annualise for FY22, P/E works out to be 16.4x.

5) Means company is asking IPO price of Rs 216 in the P/E ratio of 16.4x to 22.5x

There is only listed peer, SIS Limited trading at P/E of 18.8x. Considering this, the IPO price is reasonably priced.

CMS Info Systems IPO dates for subscription, Allotment and Listing

Offer Open 21-Dec-21
Offer close 23-Dec-21
Finalization of Allotment 28-Dec-21
Initiation of Refunds 29-Dec-21
Credit to Demat Account 30-Dec-21
IPO Shares Listing Date 31-Dec-21

How to buy CMS Info Systems IPO online through Zerodha?

If you have demat account, you can login and buy this IPO.

If you do not have demat account, sign-up here for Zerodha account and proceed to next step.

If you have demat account with Zerodha, you can apply this IPO online using the UPI as a payment gateway. Zerodha customers can apply in this IPO by login into Zerodha Console submitting an IPO application form.

Follow below steps to apply this IPO in Zerodha platform:

1) Visit the Zerodha portal and login to Console.

2) Go to Portfolio and click the IPOs link.

3) Visit ‘CMS Info Systems Limited IPO’ row and click the ‘Bid’ button.

4) Enter your UPI ID, Qty and the Price which you want to bid.

5) Click on ‘Submit’ IPO application form.

6) Visit the UPI App (net banking or BHIM) to approve the mandate.

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CMS Info Systems IPO Review – Should you invest or avoid?

After going through all these points, you might be wondering whether CMS Info Systems IPO is good or bad for investment?

CMS Info Systems Limited is largest cash management company in India. Company has good customer relationship with potential business opportunities.

Company has generated stable revenue growth in the last 3.5 years.

The company’s margins shown significant improvement in the past few years.

The IPO price is reasonably priced.

Stock markets are volatile and taking corrections now and then, hence investors should be little cautious about investing in IPOs.

Considering all these positive and risk factors indicated above, investors can invest in this IPO for medium to long term perspective.

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Suresh KP

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