Table of Contents
- CMS Info Systems Limited Introduction
- What are the risk factors in CMS Info Systems IPO?
- What are the competitive strengths of CMS Info Systems IPO?
- What are the strategies Company follow towards their growth?
- What is CMS Info Systems Limited’s business model?
- Who is the promoter of CMS Info Systems Limited?
- How are the Company Financials?
- What are the objects of CMS Info Systems IPO net proceeds?
- CMS Info Systems IPO open & close date
- CMS Info Systems IPO allotment, refund & listing date
- CMS Info Systems IPO allotment status
- CMS Info Systems IPO GMP (Grey Market Price) today
- CMS Info Systems IPO details, price band, & RHP
- CMS Info Systems IPO live subscription status
- CMS Info Systems IPO valuation (Overpriced or not?)
CMS Info Systems Limited Introduction
They are India’s largest cash management company based on the number of ATM points and the number of retail pick-up points as of March 31, 2021, as well as one of the largest ATM cash management companies worldwide based on the number of ATM points as of March 31, 2021.
Their business includes installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks under long term contracts
CMS Info Systems Limited a Mumbai-based company is coming up with an IPO of 1,100 Crores. For further details read below analysis
What are the risk factors in CMS Info Systems IPO?
1. The entire IPO is of an offer for sale (OFS) which will directly go to the selling shareholders and not to the company
2. The company generates major revenue from cash management services utilized by the banks, so any change in the banking sector will be harmful to the company
3. A large portion of revenue for the company comes from limited customers
4. The company’s business model is highly risk-prone and exposed to risks like robbery, theft, and fraud
5. As the company handles a large volume of cash they are exposed to various security risks and crimes
6. The company’s expenses comes mostly from third-party services
7. The company’s promoter has pledged his shares over a US$60 Million Loan facility
8. There are outstanding legal proceedings against the company, its directors, and its subsidiaries.
9. The company has certain contingent liabilities which if materialize will affect the financials of the company
10. Company’s cash flow from investing and financing activities were negative over the last three years and may continue so
11. The company may in the future borrow unsecured loans as per the RHP
12. The promoters of the company are not experienced in the field and also have not actively participated in the business activities
What are the competitive strengths of CMS Info Systems IPO?
1. CMS Info Systems Limited is India’s largest cash management company based on the number of ATM points and number of retail pick-up points
2. The company has a pan India market share fleet of 3,965 cash vans and a network of 238 branches and offices based on the numbers as of August 31, 2021
3. Company has Longstanding customer relationships mostly which are MSPs, banks, and others
4. Company has a good track record of productivity, ATM uptime, and reporting and settlement
5. The company has a highly experienced senior management team
6. The financial track record of the company is also good with increasing profits and stable revenues over the past three years
What are the strategies Company follow towards their growth?
1. In India ATM penetration is low with only 22 ATMs per 100,000 adults as of December 31, 2020, Therefore, RBI is consistently growing ATM’s and its penetration which will ultimately grow the company’s business
2. Company has a successful track record of business acquisitions and plans to grow with more acquisitions in future
3. The company plans to drive growth through an Increasing share of integrated services, Improving productivity, and Risk cost reduction
4. Company has a strategy to expand their business areas relating to their current business-like Remote monitoring (outside the ATM and banking sectors), End-to-end currency management, Financial services distribution, Payment Solutions
5. Company plans towards continuing to develop processes and systems that support their workforce and our current scale of operations
What is CMS Info Systems Limited’s business model?
The company’s business model comprises mainly of these categories:
1. cash-in-transit services to the banks that run currency chests to enable them to distribute the cash to bank branches;
2. ATM cash management services to banks (on behalf of MSPs) to enable them to distribute cash and replenish their ATMs with cash;
3. ATM deployment and maintenance services to banks and on behalf of banks, Brown Label ATM services
4. retail cash management services to retailers and other corporates
5. reconciliation of ATM and retail cash balances and end-of-day reporting
6. credit and debit card personalization services to banks wishing to distribute credit and debit cards to give their customers access to cash; and
7. currency chest automation, which in addition to dedicated cash-in-transit service, also includes automated cash processing
Who is the promoter of CMS Info Systems Limited?
Sion Investment Holdings Pte. Limited is the promoter of the company.
How are the Company Financials?
- For the last three years revenues have Slightly inncreased
- Profits for the last three years are showing consistent growth
|Financial Year Ended||Revenue (₹ Million)||PAT (₹ Million )||EPS (₹)|
|As of August 31st, 2021||6,297.23||844.70||5.49|
What are the objects of CMS Info Systems IPO net proceeds?
The entire IPO is of a 1,100 Crores Offer for sale and no fresh issue of shares, therefore the IPO proceeds will entirely go to the selling shareholders and the company will not get any amount from it, however, the company will get listing benefits.
CMS Info Systems IPO open & close date
IPO open date is : 21st Dec 2021
IPO close date is: 23rd Dec 2021
CMS Info Systems IPO allotment, refund & listing date
CMS Info IPO allotment date is: 28th Dec 2021
IPO refund date is: 29th Dec 2021
IPO listing date is: 31st Dec 2021
CMS Info Systems IPO allotment status
IPO allotment can be checked through their registrar website linkintime.co.in on 28th Dec 2021
CMS Info Systems IPO GMP (Grey Market Price) today
|Date||GMP ( ₹ )||Premium (%)||Expected Listing Price|
|Dec 17, 2021||NIL (No trade)||–||–|
|Dec 18, 2021||NIL (No trade)||–||–|
|Dec 19, 2021||NIL (No trade)||–||–|
|Dec 20, 2021||Rs 30||13.90%||Rs 246|
|Dec 21, 2021||Rs 30||13.90%||Rs 246|
|Dec 22, 2021||Rs 30||13.90%||Rs 246|
|Dec 23, 2021||Rs 6||2.78%||Rs 222|
CMS Info Systems IPO details, price band, & RHP
|IPO bidding date||21st Dec 2021 – 23rd Dec 2021|
|Price range||Rs 205- Rs 216 Per share|
|Minimum order quantity||69 Shares|
CMS Info Systems IPO live subscription status
|Qualified Institutional Buyers (QIB)||Noninstitutional bidders (NII)||Retail individual investors (RII)||Total no of shares offered|
|No of shares offered|
|Date||Qualified Institutional Buyers (QIB) (No of times)||Noninstitutional bidders (NII) (No of times)||Retail individual investors (RII) (No of times)||Total subscription (No of times)|
|21st Dec 2021||0.00x||0.01x||0.79x||0.40x|
|22nd Dec 2021||0.00x||0.04x||1.30x||0.66x|
|23rd Dec 2021||1.98x||1.45x||2.15x||1.95x|
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CMS Info Systems IPO valuation (Overpriced or not?)
Calculating valuation with its upper price band of Rs 216
FY-21 EPS is = 11.09
The last three years’ weighted average EPS is = 9.56
5 months Aug 21 EPS is = 5.49
Workings & calculation of P.E
FY-21 EPS is = 11.09, 216/11.09 = 19.5x P.E
The last three years’ weighted average EPS is = 9.56, 216/11.09 = 22.6x P.E
5 months Aug 21 EPS is = 5.49, If we annualized it = 13.17, therefore 216/13.17 = 16.4x P.E
Hence, the company is asking P.E ranging between 16.4x to 22.6x
Only one listed peer, SIS Limited trading at a P.E of 18.8x
So, considering all these factors the IPO price is reasonably priced
CMS Info Systems IPO good or bad? (review)
CMS Info Systems Limited is India’s largest cash management company based on the number of ATM points and a number of retail pick-up points. The company has a pan India market share fleet of 3,965 cash vans and a network of 238 branches and offices based on the numbers as of August 31, 2021, Also the Financials of the company are good with consistent growth in profits and stable revenue over the past three years.
Considering the company’s business model, it has a wide scope as ATMs will grow more and ATM penetration in India will increase in the rural sectors with increased awareness.
After analyzing all its positive and negative factors investors can look for medium to long-term investment in the company, and always keep tracking the company’s financials.
Moreover about the listing gains, hence there is yet no GMP available it is hard to define its listings.
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QIB Shares Offered-Not more than 50% of the offer
Retail Shares Offered-Not less than 35% of the offer
NII (HNI) Shares Offered-Not less than 15% of the offer
Pre Issue Share Holding100%
Post Issue Share Holding 65.59%
Visit the Zerodha website and log in to Console.
Go to Portfolio and click the IPOs link.
Go to the ‘Medplus Health IPO’ row and click the ‘Bid’ button.
Enter your UPI ID, Quantity, and Price.
‘Submit’ IPO application form.
Visit the UPI App (net banking or BHIM) to approve the mandate.
65 shares x Price Rs 216 = Rs 14,040
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