CMS Info Systems IPO review: CMS Info Systems Limited initial public offer (IPO) will open for subscription on December 21st, 2021, and close on December 23rd, 2021. The company is looking to raise Rs. 1100 crores through the IPO. The complete issue will be through an offer for sale (OFS). In this article, we take a closer look at the CMS Info Systems Limited IPO Review and its possible future prospects. Keep Reading to find out!
About the Company
CMS was incorporated on March 26, 2008. It is India’s largest cash management company based on a number of ATM points and a number of retail pick-up points as of March 31, 2021. The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis. It offers solutions to for banks, financial institutions, organized retail and e-commerce companies in India.
The company operates in three business segments:
Cash management services: It includes end-to-end ATM replenishment services; cash pick-up and delivery; network cash management and verification services (together known as “retail cash management services”); and cash-in-transit services for banks.
Managed services: It includes banking automation product sales, deployment and associated annual maintenance; end-to-end Brown Label deployment and managed services for banks; common control systems and software solutions, including multi-vendor software solutions and other security and automation software solutions. The remote monitoring for ATMs business accounted for 27.88% and 30.64% of the revenue, respectively, from operations in Fiscal 2021.
Others: It includes end-to-end financial cards issuance and management for banks and card personalization services, accounting for 3.51% and 2.62% of revenue, respectively, from operations in Fiscal 2021.
Key competitors of the company:
|Details||Cash management||ATM managed services||Automation solutions||Software and technology|
|Business||ATM, Retail cash management|
(RCM) and DCV.
|AMC nd Brow label ATMs (BLA).||Sales and deployment of automation product (ATMs, kiosks, passbook printers etc.)||development, customization and deployment of software.
endpoint security solutions and remote monitoring
|Key Competitors||ATM: WSG, SIS, Brinks, Securevalue and AGS. |
RCM: Radiant, WSG and Brinks
DCV: SIS and Checkmate
|Hitachi, FIS, NCR, FSS, Euronet and Diebold Nixdorf.||NCR, Hitachi and OKI.||Software: NCR and KAL.
Remote monitoring: Securens and Ivis.
About the Industry
The cash management value chain in India includes primarily cash management services. They cover ATM cash management, retail cash management and cash-in-transit. The ATM managed services include white label ATM and Brown Label ATM services, banking automation product sales and services (“AMC”), and software and technology solutions.
India is the third-largest ATM market in the world based on the number of installed ATMs. It is expected to grow at a CAGR of 6.16% by 2027. The Indian cash management market grew at a high CAGR of 10% between 2010 to 2021 from approximately ₹ 10 billion to ₹ 27.7 billion. The services offered in this sector include cash vault services, bullion management, cash processing and other services.
The managed services market stands at Rs 68.1 billion in FY 2021. It is expected to reach a market size of INR 170.9 billion by FY 2027 at a CAGR of 16.5%.
Strengths of the Company
- Largest cash management company with a 24.7% market share of the total number of ATMs and a 41.1% share of the total number of outsourced ATMs in India.
- CMS has a product offering in all the major market segments in the industry through their integrated business platform.
- Strong PAN India presence with 3,911 cash vans and 224 branches and offices.
- Longstanding customer relationships lead to increased business opportunities.
- The company has an experienced and highly qualified management team.
Weaknesses of the Company
- The trend to move towards cashless payment methods has a direct effect on their ATM business.
- High dependence on the Banking sector for their cash management services. Any change in factors like interest rate, etc can have an adverse effect on their business.
- It is exposed to various risks such as armed robbery, third-party fraud, theft, etc as it handles a large volume of cash.
- CMS is a technology-driven company that exposes it to system failures, cyber security threats, viruses and other technological disruptions.
Key IPO Information
The promoter of the company is Sion Investment Holdings Pte. Limited.
Axis Capital Limited, DAM Capital Advisors Limited, Jefferies India Private Limited and JM Financial Limited are the Book Running Lead Managers of the issue.
Link Intime India Private Limited has been appointed as the registrar to the offer.
|IPO Size||₹1,100.00 Cr|
|Offer for Sale (OFS)||₹1,100.00 Cr|
|Opening date||December 21, 2021|
|Closing date||December 23, 2021|
|Face Value||₹10 per equity share|
|Price Band||₹205 to ₹216 per equity share|
|Lot Size||69 Shares|
|Minimum Lot Size||1|
|Maximum Lot Size||13|
|Listing Date||December 31, 2021|
The Objective of the Issue
- To achieve the benefits of listing the equity shares on the stock exchanges.
- To carry out an offer for the sale of equity shares by promotors aggregating up to Rs.1100 crores.
In this article, we covered the CMS Info Systems LimitedIPO Review 2021. The Initial Public Offering opens on December 21st and closes on December 23rd. The allotment of shares will be decided by December 28. Refunds will be initiated by December 29. The successful bidders will get shares in their Demat accounts by December 30.
For investors, it can be a good opportunity to look into the company and apply for the IPO after analysing the strengths and weaknesses of the company. Let us know what you think about the IPO in the comments below? Happy Investing!