The Initial Public Offer (IPO) of CE Info Systems Limited (CMS) is set to open for subscription on Tuesday, December 21, 2021. The cash management services company has only last week announced the price band for the public offer. CMS provides cash management services, including ATM services, and cash delivery and pick-up. On Tuesday, (Mapmy India) shares will also make debut on exchanges.

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Here are top 10 things about CMS Infosystems IPO that investors should know:

Start and Close Date:

As the public offer opens on Tuesday (December 21, 2021), the initial public offer of CMS Info Systems will conclude on December 23. .The bidding for anchor investors has been scheduled for December 20.

Price Band: 

CMS Info Systems has fixed a price band of Rs 205-216 for this IPO Issue Size. 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 an offer for sale by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia.

Promoters

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

Objective of the Issue:

*Carry out the Offer for Sale of up to 17,569,941 equity shares by the selling Shareholders.
*Achieve the benefits of listing the equity shares on the Stock Exchanges

Valuations:

Considering the FY-21 adjusted EPS of Rs 11.09 on post issue basis, the company is going to list at a P/E of 19.48 with a market cap of Rs.31, 968 mn while its peer namely SIS Limited is trading at P/E of 19.70. “It is India’s largest cash management company with Pan-India footprint with deep penetration in growing markets. Also, it is available at reasonable valuation compared to its peer,” said Marwadi Shares and Finance Limited.

Key Risks

As per Marwadi Shares and Finance Limited, the business is highly dependent on the banking sector and the company derives a substantial portion of their revenue from a limited number of customers, if they reduce its dealings with the company, their revenues could decline, which may have an adverse effect on the business, results of operations, cash flows and financial condition, highlighted the brokerage.