India’s CMS Info Systems fixes price band for its $145m IPO
By Vinu Lal
10:39, 16 December 2021
India’s CMS Info Systems, a cash management company, has fixed a price band of INR205-INR216 per share for its initial stake sale to the public, according to a press statement issued by the firm.
India’s largest cash management company based on the number of ATM and retail points, the firm intends to garner INR11bn ($145m) through the initial public offering (IPO), which is a complete offer for sale (OFS) by investor Sion Investment Holdings.
The IPO will open for public subscription on 21 December and close on 23 December, according to the Red Herring Prospectus (RHP or final papers) posted by one of the managers to the issue.
Complete offer for sale
For the financial year 2021, the total currency throughput (the total value of the currency passing through its ATM and retail cash management businesses) for the firm stood at INR915.8bn.
The company’s business involves installing, maintaining and managing assets and technology solutions on an outsourced basis for banks.
Sion Investment, an affiliate of Baring Private Equity Asia, had acquired CMS Info Systems in 2015 and as of March 2021, it owned the entire stake in the company.
Being a complete OFS, the entire proceeds will go to Sion Investment Holdings, the selling shareholder, according to the final papers.
For the financial year ended March 2021, the company posted a net profit of INR2.38bn.
CMS Info Systems’ revenue of the Indian cash management market grew 10.88% on an annual basis to INR27.7bn in the financial year 2019-20 from about INR10bn recorded in the financial year 2009-10.
The company has a pan-India fleet of 3,911 cash vans and a network of 224 branches and offices as of the financial year 2020-21.
Axis Capital, DAM Capital Advisors, Jefferies India Private and JM Financial are the managers of the issue.