The issue price band is Rs 205-216 per share. The company has raised Rs 330 crore from 12 anchor investors.
Investors can bid for a minimum of 69 equity shares and thereafter in multiples of 69 shares.
The Rs 1,100-crore Initial Public Offer (IPO) of India’s largest cash management company CMS Info Systems has opened for subscription from December 21. This issue will close on Thursday. The Rs 1,100-crore IPO is a full-fledged offer for sale by promoter Sion Investment Holdings Pte Ltd, which currently holds 100 per cent stake in the company. After the issue, the promoter’s stake will come down to 65.59 per cent. The issue price band is Rs 205-216 per share. The company has raised Rs 330 crore from 12 anchor investors.
Investors can bid for a minimum of 69 equity shares and thereafter in multiples of 69 shares. Retail investors can invest a minimum of Rs 14,904 for one lot and their maximum investment for 13 lots is Rs 1,93,752.
The allotment of shares will be decided by December 28. Unsuccessful investors will get refund by December 29. Shares will be credited to the successful bidders in their demat accounts by December 30. Shares of CMS Info Systems will be listed on BSE and National Stock Exchange on 31st December.
The Company will use the proceeds from the issue for offering for sale of equity shares by the promoters and for availing the benefits of listing the equity shares on the stock exchanges. Half the offer will be reserved for qualified institutional buyers, including anchor investors. With this, 15 percent will be reserved for non-institutional investors and the remaining 35 percent for retail investors.
CMS is one of the largest ATM cash management companies across the world by number of ATM points as of March 31, 2021. The company’s total currency inflows or the total value of currency passing through all their ATMs and retail cash management businesses stood at Rs 9.2 lakh crore in the financial year 2020-21.
Its business includes installing, maintaining and managing assets. With this, the company provides technology solutions for banks on an outsourced basis under long-term contracts.
Axis Capital, DAM Capital Advisors, Jefferies India and JM Financial are the book running lead managers to the issue. LINK is the registrar of Intime India IPO.
Money should be invested in IPO
Most of the brokerages have a positive view of the company and are advised to subscribe to the business. It has given its IPO a ‘Subscribe’ rating on the basis of its strong product portfolio, integrated business platform, its strong customer relationship and its track record of strong.
Choice Broking in its review report said that unfavorable government policies and regulations, deterioration in the financial position of banks affecting expansion of ATM network and outsourcing activities, cost inflation and competition are some of the risks.