CMS Info Systems Limited IPO Company Financials and Important Dates

CMS Info Systems Limited is one of the largest cash management companies in India. It serves its business in three segments. First line of business is cash management services. Second line of business is Managed Services and banking automation products. Third line of business is financial card issuance for banks. The company currently holds more than 3965 cash vans and 238 offices across the country.

IPO DETAILS

CMS Info Systems Limited IPO is set to launch on 21st Dec., 2021. The subscription timeline extends till 23rd Dec, 2021. The size for the IPO is 1100 Crore Rs.. No Shares are issued through Fresh Issue. Shares issued through Offer for Sale are worth Rs. 1100 Crore. The lot size is 69 shares and the price range is 205 Rs. – 216 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IMPORTANT DATES

CMS Info Systems Limited IPO begins for subscription from 21st Dec, 2021. The IPO subscription would continue till 23rd Dec, 2021. The allotment status for the shareholders who applied would come on 28th Dec, 2021. The refunds for the ones who did not get allotment would be initiated on 29th Dec, 2021. The DEMAT accounts of shareholders would be credited on 30th Dec, 2021. The listing of the company would be accompanied on 31st Dec, 2021.

Lead Managers And Promoters

The promoter of the company is Sion Investment Holdings Pte. Limited.

The lead managers are :

• JM Financial Consultants Private Limited
• Jefferies India Private Limited
• DAM Capital Advisors Ltd.
• Axis Capital Limited

The minimum lot size for the company is decided at 69 shares. This holding accounts to  14904 Rs.. The maximum lot size is decided at 897 shares. This amounts to 193752 Rs.. Hence the company’s final holdings would be set as :

OBJECTIVES FOR THE IPO

• The funds can be utilised for General corporate purposes.

COMPANY FINANCIALS

The financials of the company are visibly very strong. The assets of the company are increasing every year with a stable 3000 Crore Rs every year. The revenue of the company was 11593 Crore Rs in 2019 and it has grown to 13200 Crore Rs in 2021. If we look into the proportion of the assets and revenue then we can see that assets have increased almost 6 times whereas revenue has grown only by 1.4 to 1.5 times. This concludes that company has experienced COVID hit and on other hand it is also not able to utilize its assets at the maximum potential.  

However if we look into the profitabalitiy of the company there is a subtle trend noticeable. The assets and profits have grown with almost equal proportion. Hence the company has been focussing on increasing the profit margins and not the revenues. The achievement in these fronts have been gained as the company earned almost 700 Crore Rs more than what it earned in 2019. The profit figure is almost 80% more than the 2019 year. 

PROS

• The company has an ownership for 3965 asset vans and 238 offices across India.
• Great Financials for the past 3 years.
• It has a great dividend policy. Approximateoy 16% of its earnings go into the dividends of the company.

CONS

• The company works in a highly competitive business segment.

CMS Info Systems Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the CMS Info Systems Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.