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IPO-Note CMS Info Systems Limited
Rs-205- Rs216 per Equity share Recommendation: Subscribe

CMS Info Systems Limited IPO Company Profile:

Incorporated on March 26, 2008, CMS Info Systems Limited was India’s largest cash management company based on the number of ATM points and number of retail pick-up points as on 31st March, 2021. It had a market share of 24.7% based on the total number of ATMs in India. It operates its business through three segments- Cash management services, Managed services and others. In Cash Management services it provides end-to-end ATM replenishment services such as cash pick-up and delivery; network cash management and verification services and cash-in-transit services for banks. Managed services include banking automation product sales, deployment and associated annual maintenance; end-to-end Brown Label deployment and managed services. Others segment, include end-to-end financial cards issuance and management for banks and card personalization services. As on August 31, 2021, company has pan-India fleet of 3,965 cash vans and the network of 238 branches and offices.


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    CMS Info Systems Limited IPO Details – 

    Issue Details
    Objects of the issue ·To carry out an offer for sale of equity shares by promoters aggregating up to Rs. 1100 Crore.

    ·To achieve the benefits of listing the equity shares on the stock exchanges.

    Issue Size Total issue Size -Rs. 1100 Cr.

    Offer for Sale – Rs. 1100 Cr.

    Face value Rs.10.00 Per Equity Share
    Issue Price Rs. 205– Rs. 216
    Bid Lot 69 shares
    Listing at  BSE, NSE
    Issue Opens: 21st Dec, 2021 – 23rd  Dec, 2021
    QIB 50% of Net Issue Offer
    Retail 35% of Net Issue Offer
    NIB 15% of Net Issue Offer

                         CMS Info Systems Limited IPO

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    CMS Info Systems Limited IPO Strengths:

    • CMS is a Leading player in consolidating market with strong financials
    • It has Pan-India footprint with deeper penetration in growing markets
    • Longstanding relationships with the customers leading to increased business opportunities
    • Integrated business platform offering a broad range of Products and Services

    Check CMS Info Systems Limited IPO Allotment Status

    Go CMS Info Systems Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

    One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

    1. To CMS Info Systems Limited IPO Allotment Status
    2. Go to Application Status
    3. Select IPO as CMS Info Systems Limited IPO
    4. Enter your PAN Number or Application Id or DP Client Id.

     

    CMS Info Systems Limited IPO

    Application Form

    CMS Info Systems Limited IPO Financial Performance:

    CMS-Info-Systems Limited- IPO-Financial -Performance

    CMS Info Systems Limited IPO Shareholding Pattern:

    Shareholding Pattern Pre- Issue Post Issue
    Promoters & Promoter Group 100% 65.59%
    Public 34.41%

    CMS Info Systems Limited IPO Key Highlights:

    • Revenue from Operations grew at a CAGR of 6.75% from FY19-21.

    • Net profit Margin of the company improved from 9.74% in FY20 to 13.49% as on August, 2021

    • The share of the managed services revenue in the total revenue increased from 17.01% in FY19 to 30.4% at the end of August, 2021 and cash Managed services share in revenue decreased from 76.82% in FY19 to 66.37% at the end of August, 2021

    • Current Ratio of the company stood at 2.28 as on 31 August, 2021

    CMS Info Systems Limited IPO Risk Factors:

    • The business of the company is highly dependable on banking industry and adverse impact on the industry would adversely impact the company.

    • Derive a substantial portion of revenue from a limited number of customers with top 10 customers contribute 74.97% in total Revenue

    • By Virtue of the nature of industry and being in the business of handling large volumes of cash company is exposed to various security risks.

    CMS Info Systems Limited IPO Outlook:

    CMS Info Systems Limited provides cash management services and is one of the largest ATM cash management companies worldwide based on number of ATM points. The revenue of the Indian cash management market grew at a high CAGR of ~10% between Fiscal Year 2010 to Fiscal Year 2021 from approximately ₹ 10 billion to ₹ 27.7 billion due mainly to an increase in the services offered by cash management companies. The ATM base in India is expected to increase from 255,000 in Fiscal Year 2021 to 365,000 by Fiscal Year 2027 and outsourcing of cash management services is expected to play a key role in this expansion. The big three private banks (i.e. ICICI Bank, HDFC Bank and Axis Bank) have already achieved 90% outsourcing and the rest of the private banks are expected to follow suit. At the higher price band of Rs 216, the offer is made at P/E multiple of 18.97x of FY21 EPS, which is in line with the industry peers such as SIS Limited. The unlisted peer AGC transact which is a close peer to the company has negative revenue CAGR from FY19-21 and lower PAT margin than CMS Info Systems. Considering the leadership of the company we recommend subscribe to the IPO.

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