CMS Info Systems IPO Subscription – Should I Buy

CMS Info Systems IPO Reviews

CMS Info Systems Limited is India’s largest cash management company based on the number of ATM points retail pick-up points that Initial public offering (IPO) will open on 21^st December 2021.

CMS Info Systems IPO Subscription Here are key important points that you should know before subscribing to the issue:

Issue Date	21st Dec’21
Closing Date	23rd Dec’21
Price Band	₹205-₹216
Lot Size	69 Shares
Offer For Sale	1100 CR

CMS Info Systems IPO: Objectives of the Issue

The Objective of the IPO is to sell the shares and get the facility to list the shares on the stock exchange.

CMS Info Systems IPO: IPO Details

The Rs 1,100 crore IPO is offered for sale (OFS) by Sion Investment Holdings Pte Ltd, which is 100 percent owned by the company. The three-days offer, which opens on December 21 and closes on December 23. The offer price band is set at Rs 205-216 per share. Investors can bid for at least 69 shares and multiples. Knowledgeable investors can invest a minimum of Rs 14,904 at one time and a maximum of Rs 1,93,752 in 13 lots. A single investor can apply for up to 13 lots.

CMS Info Systems IPO: Offer Allocation

• 50% of issues are addressed to professional institutional buyers and
• 15% to non-institutional clients.
• 35% to retail investors of the issue.

CMS Info Systems IPO: Company Profile and Industry

• As a market share leader CMS Info Systems Ltd, we have been leading from the front and making those investments so that it can benefit the currency ecosystem benefits Indian consumers, and our own industry.
• As per the market data we think there is a massive opportunity as banks will outsource more and more that the company will get a benefit of that growth.
• The number of savings accounts in the country is growing about one or three percent every year or 900 million days that’s a large number of additions to happening each of these accounts has a debit card.
• Since demonetization the Reserve Bank of India (RBI) has been focused on improving the operating standards of both the banks and the currency management companies to global levels.
• The velocity of cash flow in India is very low, which is one and a half times X as compared to China (which is eight) and Brazil. India is becoming another large emerging market.
• There’s a significant opportunity for ATM penetration because they are one of the easiest forms of access to banking access for people in many locations of the country.
• The ATM market in India is poised for a growth of about eight percent from where it is right now for the next six years.
• Any regulatory impact in any industry is always focused on making sure that a consumer benefits.
• Only 250 million debit cards are used actively which is about once a month that’s what you call active usage. 650 million people aren’t using their debit card actively they will use it more actively over the next decade. The base of 900 million debit cards as they start using more of the debit cards.
• As of August 31, 2021, the company owns pan-India ships of 3,965 pickup vans, and their total cash flow, or total cash flow passing through all their ATMs and cash management businesses, has reached Rs 9.2 lakh crore (Rs 9.2 trillion)
• In the last 15 months, we have issued a variety of large RFP and almost 20 000 ATMs which are coming this is one example of a value chain.
• A large part of e-commerce is cash and delivery even today in the length and breadth of the country.

CMS Info Systems IPO: Product and Services

Corporate business involves the installation, storage, and management of assets and technology solutions under long-term contracts. The company operates in three phases which are financial management services (68.6% of revenue for 2020-21); managed services include flexible banking products, uniform control systems, and software solutions (27.9%); and other functions, including issuing bank cards and custom card services (3.5%) . They work for private and public companies such as Axis Bank, HDFC Bank, and ICICI Bank.

Software and Technology	Advanced Automation	ATM Operated Service
Involves development, customization, and deployment of software.	Involves all services related to end-to-end management of ATMs including product deployment, annual maintenance contracts.	Involves sales and deployment of automation products (ATMs, kiosks, passbook printers, etc)

CMS Info Systems IPO: Promoters and Management

The promoter of the company is Sion Investment Holdings Pvt. Limited holding 100% stake in the company. Its senior management team is led by the Deputy Chief Executive Officer, Chief Executive Officer, and Permanent Director, Rajiv Kaul, former general manager, and executive director, India at Microsoft Corporation (India) Private Limited and a former partner at Actis Capital LLP, London. Gopinath is chairperson and independent director and Pankaj Khandelwal is president and chief financial officer. After the issue, the promoter shareholding will come down

SHAREHOLDERS	PRE-IPO	POST-IPO
Promoter	100%	65.5%

CMS Info Systems IPO: Peers Companies

CMS Info Systems IPO: Industry Outlook in India

India’s market for financial management services has risen sharply in the two-digit CAGR between FY’13 2014 – FY ‘2019. The Financial Management Market has seen a decline in the growth rate between FY ‘2016 to mid of FY’2018 due to monetization in the financial sector. Government Schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY) also increase the demand for cash at ATMs as the number of active ATM cardholders grows exponentially, which will directly increase the demand for money laundering companies. The market will generate revenue with a one-digit CAGR for the period between FY ‘2019 – FY’ 2024.

CMS Info Systems IPO: Risk Factors

THe total ATM access in India is quite low. ATMs are also used unequally between rural and urban areas.

CMS Info Systems IPO: Listing And Allotment Status

Trading will commence from December 31, 2021, on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The allotment of shares will be finalized by December 28, 2021, and the unsuccessful investors will be returned to their bank accounts by December 29, 2021. The letter that holds the lead managers in the case is JM Financials, DAM Capital and Axis Capital.

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Disclaimer
All the information are used for education purpose only. Investing in IPO poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.