CMS Info Systems IPO: Opens tomorrow; find key details that investors must know before investing

CMS Info Systems Limited, India's largest cash management company in terms of the number of ATM points and retail pick-up points, will launch its initial public offering (IPO) for subscription tomorrow, i.e., on Tuesday, December 21, 2021. Bidding for the CMS Info Systems IPO will end on Thursday, December 23, 2021.

The company seeks to raise Rs 1,100 crore from the initial public offer. The shares of the company will be available for bidding in a price band of Rs 205-216 per share. Retail investors can bid for the public offer for a minimum of 69 equity shares, and in multiples thereof up to 13 lots. At the upper end of the price range, one lot is valued at Rs 14,904 and 13 lots worth Rs 1,93,752.

The initial share sale of Mumbai-based CMS Info Systems is entirely an offer for sale (OFS) by promoters and existing shareholders.

Axis Capital Limited, DAM Capital Advisors Limited (Formerly IDFC Securities Limited), Jefferies India Private Limited, JM Financial Limited are the book running lead managers of the issue. Link Intime India Private Limited is the registrar for it.

Of the total size of the IPO, 50 per cent is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors.

The objects of the offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges. Shares are likely to list on stock exchanges BSE and NSE on December 31, 2021.

CMS Info Systems is India's largest cash management company based on a number of ATM points and the number of retail pick-up points as of March 31, 2021, as well as one of the largest ATM cash management companies worldwide based on a number of ATM points as of March 31, 2021. (Source: Frost & Sullivan)

For Fiscal Year 2021, its total currency throughput or the total value of the currency passing through all of our ATM and retail cash management businesses amounted to Rs 9,158.86 billion. Its business includes installing, maintaining and managing assets and technology solutions on an end-to-end outsourced basis for banks under long term contracts.

India is the third-largest ATM market in the world based on the number of installed ATMs.

CMA Info Systems integrated business platform is supported by customised technology and process controls, which enables it to offer our customers a wide range of tailored cash management and managed services solutions while generating cross-selling opportunities and driving synergies and efficiencies across our business. IT caters to a broad set of outsourcing requirements for banks, financial institutions, organized retail and e-commerce companies in India. It operates our business in three segments:

• Cash management services, which include end-to-end ATM replenishment services; cash pick-up and delivery; network cash management and verification services (together known as "retail cash management services"); and cash-in-transit services for banks, accounting for 68.61 per cent and 66.74 per cent of our revenue respectively from operations in Fiscal 2021 and the five months ended August 31, 2021, and grew at a CAGR of 0.31 per cent from the Fiscal Year 2019 to the Fiscal Year 2021.

• Managed services, which include banking automation product sales, deployment and associated annual maintenance; end-to-end Brown Label deployment and managed services for banks; common control systems and software solutions, including multi-vendor software solutions and other security and automation software solutions; as well as remote monitoring for ATMs, accounting for 27.88 per cent and 30.64 per cent of our revenue, respectively, from operations in Fiscal 2021 and the five months ended August 31, 2021, and grew at a CAGR of 35.88 per cent from the Fiscal Year 2019 to the Fiscal Year 2021.

• Others, which include end-to-end financial cards issuance and management for banks and card personalization services, accounting for 3.51 per cent and 2.62 per cent of our revenue, respectively, from operations in Fiscal 2021 and the five months ended August 31, 2021.