CMS Infosystems IPO: Company is a market leader in its space, apply as an investment stock, says Anil Singhvi

The initial public offer of Cash Management Company (CMS) Info Systems has opened for subscription on Tuesday, December 21, 2021. The provider of cash management services, including ATM services, cash delivery and pick-up, has fixed a price band of Rs 205-216 per share for this IPO. The three-day initial public offer will close on December 23.  

As the issue has opened for subscription on Tuesday, Zee Business Managing Editor has termed it as an investment stock. "You may not get massive listing gain on this IPO, but this is a stock that one can keep in their portfolio," he said.  

He said the company is a market leader in its space and is backed by good promoters and strong financial track record. Besides, the company has also floated IPO at reasonable valuations, said Singhvi. " The company has zero-debt, a strong free cash flow and is a continuous profit-making entity. The company also boasts of strong balance sheet," he said.  

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Speaking of negatives, he said the government's focus on digital payments, merger of banks and dependence on third-party service providers can somewhat affect the business of this company.  

The company size is worth Rs 1,100-crore. CMS Info Systems has cut its IPO size to Rs 1,100 crore from Rs 2,000 crore earlier. The public issue is a purely offer for sale by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia.  

Sion Investment, which acquired CMS in 2015, holds a 100 per cent stake in the company at present.  

The company plans to use the proceeds to carry out the offer for sale of up to 17,569,941 equity shares by the selling Shareholders and chieve the benefits of listing the equity shares on the Stock Exchanges

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— Zee Business (@ZeeBusiness) December 21, 2021

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.

CMS Infosystems IPO Timeline
Application start date: December 21, 2021
Application end date: December 23, 2021
Application begins on: December 28, 2021
Refund initiation date: December 29, 2021
Allotment date: December 30, 2021
Listing date: December 31, 2021