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The initial public offering (IPO) of cash management company CMS Info Systems Limited has been subscribed 51% on the second day of subscription on Wednesday with the category for retail investors overbooked 1.01 times and non-institutional investors 0.03x, as of 12:25 pm.

CMS Info's 1,100-crore public issue is 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 IPO is 205-216 per share that will close on December 23.

As per market observers, CMS Info Systems shares are available at a premium of 30 in grey market. The company's shares are expected to make stock market debut on December 31, 2021.

"Considering the continued vital role of the cash in the domestic economy and the company diversified product portfolio across the cash management value chain coupled with its dominant market position in the sector, we assign a “SUBSCRIBE" rating for the issue," said Choice Broking.

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.

“While evaluating on the financial front at the upper end of the IPO price band the valuation seems to be reasonable, factoring all the above Scenarios, we assign 'Subscribe- Long Term' rating to this IPO," said brokerage house Anand Rathi. 

Those at Angel One have a Neutral rating on CMS Info Systems IPO. “CMS is primarily dependent upon the banking sector for most of its revenues and has high client concentration with top three customers accounting for 44.6% of revenues for the first five months of FY22. Given the dependence on a single sector, high client concentration and possible impact on business due to a third Covid wave we have a Neutral recommendation on the IPO," the note stated.

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