CMS Info Systems shares surge 11% post tepid listing; buy, sell or hold—what should investors do next?

CMS Info Systems: Soon after making a flat debut, the shares of CMS Info Systems on Friday surged nearly 11 per cent on the listing price to Rs 243.75 per share on the BSE.  At 10.35 am, the shares of cash service provider were trading at Rs 240.65, up Rs 22.15 or 10.14% on the exchange.  This was a gain of 10.14% on the listing price of Rs 218.50 and 11.41% on the issue price of Rs 216 per share.  

The shares of CMS Infosystems had made a flat debut as they were listed at Rs 218.50, a gain of Rs 2.50 or 1.16%, on the BSE. The shares of the cash management services provider opened at Rs 220.20, a gain of Rs 4.20 or 1.94% against the issue price, on the NSE.

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Meanwhile, as the shares have surged and opened as anticipated by the street, what should investors do next? Should they buy, sell or hold?  

Santosh Meena, Head of Research, Swastika Investmart Ltd, said with the government's focus on digital payments, the availability and use of cash could further decline. This could adversely affect the business activities of the company, he said.  

"The investors who got the allotment can keep a strict stoploss of Rs 200, while we recommend investors to invest in the other business with high growth potential," he added.  

Zee Business Managing Editor Anil Singhvi, who hits the bull's eyes with his prediction, when he the shares are expected to list near issue price of Rs 216, suggested to hold them for long-term dubbing it as an investment stock.

CMS provides cash management services, which include ATM services, cash delivery and pick-up. The company's integrated business platform is supported by customised technology and process controls, which enables it to offer customers a wide range of tailored cash management and managed services solutions. 

It caters to a broad set of outsourcing requirements for banks, financial institutions, organised retail and e-commerce companies in India. It operates business in three segments -- cash management services, managed services, and others.