CMS Info Systems make tepid market debut
Shares of CMS Info Systems made their stock market debut on the last day of the year that witnessed record number of companies raising funds through public issues.
CMS Info Systems shares got listed at Rs 220 per share on the NSE, nearly 2% premium as compared to its IPO issue price of Rs 216 apiece. On the BSE, the stock started trading at Rs 218.5 per share on Friday, and surged further to Rs 249 in early deals.
However, the company is staring at subdued prospect given the government’s focus on digital payments, which may lead to decline in the availability and use of cash.
CMS provides cash management services, which include ATM services, and cash delivery and pick-up. It caters to broad set of outsourcing requirements for banks, financial institutions, organized retail and e-commerce companies in India.
Cash management company CMS Info Systems’ three-day initial public offering (IPO) was subscribed 1.95 times on the last day of subscription that closed on December 23. The initial share sale received bids for 7,32,71,721 shares against 3,75,60,975 shares on offer.
The company’s Rs 1,100-crore public issue was a pure offer-for-sale (OFS) by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia. The price range of the offer was at Rs 205-216 per share.
CMS Info Systems garnered Rs 330 crore from anchor investors ahead of its offering that opened on December 21, 2021. Axis Capital, DAM Capital Advisors, Jefferies India, and JM Financial were the book running lead managers to the issue.
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